The Employment Effect Of OFDI In China

In recent years,the development of China's foreign direct investment is rapid,and China's foreign direct investment can still hit a high record in the background of the global foreign direct investment flows decline and the difficult world economic recovery.At the same time,the influence of foreign direct investment on China's domestic economy will be further enhanced with the continuous expansion of China's foreign direct investment.Employment is one of the key words of the two sessions in 2015,and it has been the focus of close attention of the government.In recent years,the graduates of university are nearly 8 million.The stagnation of the economic growth rate and the increasing number of labor force to create a concerted impact on employment trend.As a difficult problem,the problem of employment has attracted the policy makers' eyes.Although domestic and foreign research on China's foreign direct investment is relatively comprehensive,the research of the effects of domestic economics is rare,especially the employment.In view of this,due to "The Inevitability of Scale Expansion of Foreign Direct Investment " and "Grim Situation of Employment in Long-term",this paper want to analyze the employment effect of outward foreign direct Investment in the home country.And try to answer the following questions:Whether a country's OFDI will affect its home country's employment;Is the effect a positive or negative impact;Whether the impact of OFDI on China's domestic employment is positive or negative;the employment effect of China's outward foreign direct investment through which specific transmission path China's outward foreign direct investment to use.In view of the above situation,this paper has established a series of mechanism of the employment effect of outward foreign direct Investment based on the basic theory of the employment effect of outward foreign direct Investment in the home country.Such as domestic investment transmission,market expansion and conduction,foreign trade conduction,industrial structure conduction,labor cost conduction,technological innovation conduction and its like.And based on what mentioned above,this paper build the model,estimate the regression model by E-views software,finally get a conclusion,that is:Overall,China's outward foreign direct investment significantly promoted domestic employment.Although outward foreign direct investment will inevitably transfer part of the funds to foreign countries and then reducing domestic investment,China's outward foreign direct investment still have a significant positive impact on domestic employment.In addition,foreign trade,technological progress and industrial restructuring play a positive intermediary role in the employment effect of outward foreign direct Investment in the home country.Based on the relevant conclusions of the empirical test,the author draws some suggestions to improve China 's outward foreign direct investment,and show the practical significance and value of this paper.That is:Rational choice of investment,consolidation of existing investment;Export tax incentives,encourage business investment;Access to advanced technology,promote employment growth;Adjust the investment structure,choose the right industry and its like.The research of this paper is divided into the following five parts:The introduction part mainly elaborated the theoretical significance and the realistic background,the research mentality and the method of this article,as well as some innovative points which may exist in this article.In the part of theoretical analysis,the related concepts of this paper are defined,and the paper on the employment effect of OFDI are summarized.And then the author summed up the job creation theory,employment alternative theory,corporate strategic impact theory,the employment structure optimization theory and other related theories.In the mechanism analysis,the mechanism of home country employment effect of OFDI is analyzed through the general conduction and the internal conduction.The general transmission mechanism includes domestic investment,foreign trade and market expansion,and the internal transmission mechanism includes industrial structure,human capital and technological innovation.In the part of empirical research,the theoretical hypothesis is put forward and the empirical model is constructed in the first.Then,the panel data of each province in China are used to analyze and test the employment effect of OFDI and obtain the corresponding result.The conclusions and suggestions,combined with theoretical research,mechanism analysis and empirical results,draws the conclusion that OFDI affects our country's employment,and then puts forward some corresponding policy recommendations according to the conclusion.