Research Of Employment Creation Effect Of Greenfield Investment In China

Greenfield Investment and Cross-border Merges and Acquisition are main entering mode for foreign investors in host country.From employment effect,Cross-border M&A mainly integrates current employees,thus increase less employment opportunities,which Greenfield Investment could bring more new-created employment opportunities.Therefore,almost all host countries are welcome of Greenfield Investment.According to the data from Fdi Markets database,4.09 million employment position have been directly set benefited by foreign Greenfield Investment in China.Therefore,it's necessary to research employment creation effect of Greenfield Investment and find which factors influence the distribution differences of employment creation.Although there are lots of articles covering foreign direct investment and employment effect,a few exist in Greenfield Investment and employment effect.What's more,most of the researches focus on foreign direct investment's employment effect and the relations between geographical distribution and employment,and there are few articles singly researching the relations between foreign direct employment and employment effect.Beginning from analyzing current status of foreign Greenfield Investment and employment status,this dissertation also calculates contribution rate of foreign Greenfield Investment for regional employment and make an empirical analysis of the factors that influence unbalanced regional distribution of foreign Greenfield Investment based on employment creation mechanism.We find that foreign Greenfield Investment actually contributes a lot in employment creation,but big differences exist in regional employment creation.East area has much higher employment creation effect of Greenfield Investment,and the effect is obviously lower in Middle area.Besides,the empirical research also shows that the factors that influence regional employment effect of Greenfield Investment are different.In the end,the dissertation also put forward some recommendations including keeping economic development in Middle and West area,building employment support system for government as well as taking advantage of current economic opening policies so as to achieve sustainable employment.The dissertation can be divided into six parts.The first part is introduction This part shows why the topic has significance based on reviewing research background.In addition,this part also indicates the innovative and backward points from data use and the employment creation trend of foreign Greenfield Investment.The second part is theory foundation,mainly including theory of employment creation of foreign Greenfield Investment and theory of influenced factors for employment,thus builds theory foundations for further studies.The third part is current status analysis of foreign Greenfield Investment and its employment creation effect.Through data analysis from Fdi Markets database,scale and regional distribution status of foreign Greenfield Investment are presented in this part.Besides,this part shows China's employment status through data analysis from statistical yearbook.Finally,analysis of the differences of Greenfield Investment is made benefited by calculating the contribution rate of Greenfield Investment for regional employment.The fourth part is mechanism analysis of employment creation effect of foreign Greenfield Investment in China.Two perspectives including mechanism of employment creation effect and regional employment creation mechanism are presented.Detailly speaking,direct and indirect employment effect mechanism are analyzed in the first section.Due to involving regional resource distribution mechanism and differences in policy making,the second section will focus on the two mechanism.The fifth part is empirical analysis of foreign Greenfield Investment's employment effect.Fixed effect model is adopted in this part to analyze which factors influence the regional differences in direct and indirect employment effect.What's more,comparative analysis of influenced factors is made in the third section.The sixth part is conclusion and recommendations.Besides making conclusions for the whole dissertation,recommendations including improving foreign investor's investment and management environments,strengthening economic development in Middle and West area,building employment service government and utilizing policy advantages of economic opening.The above analysis shows that both direct and indirect employment creation effect is made,which is one of innovative points.In addition,the number of employment brought by Greenfield Investment project is regarded as explained variable,which is the micro foundation for the dissertation.However,due to insufficient data in industry research,the dissertation just makes regional analysis instead of industry analysis,which needs to be improved in the future.