Research On The Impact Of Outward Foreign Direct Investment On Domestic Employment

In recent years,with the development of the economy,the deepening of reforms and the implementation of China's “going out” strategy,China's outward foreign direct investment has increased.According to the "2016 China Outward Foreign Direct Investment Statistics Bulletin" issued by the Ministry of Commerce,China's outward foreign direct investment flows exceeded foreign direct investment for the first time in 2015,and China's net capital output was realized for the first time.The proportion of outward foreign direct investment in China's economy is growing and playing an increasingly important part in the process of economic development.At the same time,the country is facing increasing employment pressure,not only because the scale of employment is increasing day by day,but also what is even more difficult is that with the deepening of economic transformation,labor demand and unemployment coexist in the market,and more and more labor is occurring.Structural unemployment caused by skills,experience,knowledge structures,etc.that do not match job vacancies.Therefore,it is particularly important to study the impact of China's outward foreign direct investment on domestic employment scale,employment structure and employment skills.This is also the main issue to be discussed in this paper.In view of the above situation,this paper takes the three aspects of domestic employment in the home country as the entry point,and studies the impact of China's outward foreign direct investment on the domestic economy from the employment field,and makes up for the shortcomings of existing domestic and foreign literature research.This paper firstly sorts out the general theoretical basis of the employment effect of outward foreign direct investment in the home country.On this basis,it analyzes the mathematical model of the influence of outward foreign direct investment on employment,and then from the perspective of the differences between foreign companies' direct foreign investment motives.It sorts out the mechanism of the impact of outward foreign direct investment on domestic employment,and clarifies the transmission mechanism of outward foreign direct investment on domestic employment scale,employment structure and employment skills.Secondly,construct an empirical model and use China's economic data for empirical testing.The empirical test part is mainly carried out from the following three aspects:First,use the provincial panel data to empirically test the impact of outward foreign direct investment on domestic employment scale,employment structure and employment skills.Among them,the employment structure is measured by the proportion of employed persons in the three major industries,and the quality of workers,that is,the employment skills of employed persons,is measured by the number of highly skilled and low-skilled workers.Second,perform a hysteresis analysis.Empirically test whether the impact of outward foreign direct investment on domestic employment scale,employment structure and employment skills is sustainable.Third,a robust test.Data will be replaced by the explanatory variables to test whether the empirical regression results are robust.Subsequently,based on theoretical analysis and empirical test,the conclusions of this paper are drawn:Outward foreign direct investment can increase the scale of employment in China and promote the employment of domestic workers;The growth of outward foreign direct investment has reduced the proportion of employees in the primary industry,increased the proportion of employees in the secondary and tertiary industries,and promoted the transfer of employees in the primary industry to the secondary and tertiary industries,optimizing the domestic employment structure;Outward foreign direct investment can promote the employment of highly skilled workers,reduce the employment of low-skilled workers,and improve the quality and skills of the overall employment of the country.Finally,based on the relevant conclusions drawn from theoretical analysis and empirical tests,propose policy recommendations that are consistent with China's national conditions:The government should encourage enterprises to “go global” through financial support,fiscal taxation,subsidy policies,etc.,or simplify foreign direct investment procedures,improve the efficiency of outward foreign direct investment audits,expand the scale of outward foreign direct investment,and boost the total domestic employment.;Guide the host country and industry selection of foreign direct investment enterprises,optimize the industrial structure and employment structure,and increase the number of employed people in the secondary and tertiary industries,especially the employment of workers in the tertiary industry;Support outward foreign direct investment for the strategic assets needed for further development,acquire advanced foreign technology,improve the core competitiveness of Chinese enterprises,and promote the improvement of the quality of domestic laborers;vigorously develop education and vocational skills training,increase Relevant educational investment,improve China's human capital level,meet the needs of enterprise talents,optimize the domestic employment structure,improve the quality of employed people in China,increase the scale of domestic high-skilled labor and employment,and improve the skill level of employed personnel.