Research On Effect Of China's Outward Foreign Investment On Domestic Employment

The Chinese government has actively promoted the construction of "One Belt and One Road",and the "going out" work system has been continuously improved.Nowadays,Chinese enterprises have actively integrated into the economic globalization process.In 2016,China's foreign direct investment(FDI)hit a record high of $196.15 billion dollars,ranking second in the world.FDI also plays more and more important role in China's economic development.With the slowdown of China's economic growth,the problem of excess capacity and the problem of employment structure are also becoming more and more prominent,and the government is facing increasing employment pressure.With the increase of the employment population,the development of the technology and the demand for the high-quality workers are also increasing.And the structural unemployment problem is urgently needed to be solved.Therefore,in view of the increasing pace of China's going out and the increasingly severe employment situation,this paper tries to study the relationship between the two and answer the following questions: Does OFDI have effect on China's employment?If so,is the effect positive or negative? Can we use OFDI to improve our employment scale and employment structure?Based on the above issues,this paper summarizes and analyzes the related theories and researches both at home and abroad,and analyzes the influence of OFDI on home country employment in theory.And from the perspective of macro supply,this paper explores the transmission mechanism of OFDI to home country employment.OFDI can influence domestic production factors and affect employment through domestic investment channels.In addition,OFDI can have effects on domestic employment by acting on industrial structure,human capital and reverse technology spillover effect,affecting domestic technical productivity.Thus,on this theoretical basis,using Greenaway(1999)and Mao Risheng(2009)the research model,on the Cobb-Douglas production function and the corresponding measurement model was constructed.And then by using dynamic panel system GMM method to industry data for empirical research,analysis of the total effect of OFDI on employment in China and industry differences in effect.Among them,the influence of OFDI on the overall employment scale of China has a certain promoting effect,but the performance of this function has a lag.Foreign direct investment has a negative effect on employment situation in the first and second industries.It has positive effecton the employment of tertiary industry.This is inseparable from the difference of China's industrial structure and the industry's effect on the technical efficiency factor,but ultimately,it can optimize our employment structure to a certain extent.Finally,according to the theoretical and empirical analysis,combined with the specific situation of our country,the countermeasures and suggestions are put forward to improve the domestic employment of China.