FDI,Foreign Investment Policy And Employment

In recent years,as more and more foreign direct investment(FDI)flow into China,China has overtaken America as the world's biggest recipients of foreign investment,the employment and wages in China caused great impact.As a populous country,employment is one of the primary concerns of the government.This paper analyzes the employment of our country from two angles of employment and wage.For the study of influence mechanism of China's FDI and foreign investment policy on China's urban employment and urban wages,we carry out the theoretical analysis of foreign investment's influence on the employment and wages,and implement the statistical description.We utilize the industrial policies for foreign investment to measure the degree of restriction and examines the influences of industrial policies for foreign investment and FDI on the urban employment and the urban wage with the panel data of 18 industries ranging from 2004 to 2015.The results show that there are significant positive correlations between foreign direct investment and urban employment levels,and decreasing the degree of restriction of foreign investment cannot directly affect the urban employment levels but can play a positive role through FDI;foreign direct investment has significant positive effects on the urban wage levels and decreasing degree of restriction of foreign investment can not only directly push the urban wage levels up but also can play a positive role by adjusting the impacts of FDI on the urban wage levels.