An Analysis Of The Employment Effect Of FDI In Service Sector In Tianjin

With the deepening of Chinese reform and opening and the trend of economicglobalization, obviously Tianjin city that attracts foreign direct investment (FDI) is alsoexpanding the scale and the service industry is increasing the proportion of FDI. Since thereform and opening, foreign direct investment plays a key role in promotingeconomic growth of Tianjin city. And the employment is a very important aspect ofeconomic development. The influx of FDI in service industry has made certain contributionof the Tianjin city’s employment. As attracting more and more foreign direct investment,the content of capital and investment way are undergoing profound changing. Thecorresponding effects of services FDI on employment are constantly changing.Therefore, in order to understand the relationship between FDI and Tianjincity employment and promote the positive contribution to Tianjin employment, in-depthstudy on comprehensive effect of foreign direct investment on employment has been verynecessary and meaningful. In this paper, the employment effect of foreign direct investmentin Tianjin city service industry is a research system. Studying the affect of foreigndirect investment on employment quantity and employment quality uses the method ofqualitative analysis and quantitative analysis.By a large number of domestic and foreign literature The paper reviews the domesticand foreign scholars’ research on FDI and employment, following by the analysis of theimpact of foreign direct investment on employment mechanism and the situation of FDIand employment in service industry in Tianjin, Empirical analysis was carried out on theemployment effects of FDI in service industry in Tianjin. the results show that FDI inservice industry of Tianjin has little effect on total employment in the whole society, but theFDI in service industry of the Tianjin has driven employment in Service; The averagesalary for FDI in service industry and service industry does not exist positive correlation,working reason more affected by the growth of domestic investment, price level and otherfactors; The results show that FDI in service industry promotes the third industry’ laborproductivity. Based on the above analysis this paper puts forward the better useful ways offoreign direct investment in service industry to improve employment quality and quantityof Tianjin.