The Employment Effect Of FDI And Countermeasure Analysis In Henan Province

In the past 40 years of reform and opening up,China has continuously improved the openness of the domestic market.A large number of FDI companies have flowed into Henan,and their scale has been continuously expand,which has provided strong financial support for the local economy and has a impact in many aspects on employment.On the one hand,FDI provides training and employment opportunities for profession persons in Henan Province.On the other hand,there is still a certain crowding out effect.Therefor,analysising of the relationship between FDI and employment in Henan Province can better use foreign capital to promote employment in Henan Province.This paper reviews and summarizes the study on the relationship of FDI and employment relationship between domestic and foreign,combines with the present situation of foreign direct investment and employment in Henan Province and uses the methods of qualitative and quantitative analysis to study the relationship on the total FDI,total employment and employment structure in Henan Province,trying to systematically explore the employment effects of FDI in Henan Province from multiple levels.After analysis,we can get conclusions.Firstly,FDI has a long-term stable equilibrium relationship with the total amount of employment and FDI is the Granger cause of labor employment in Henan Province,which has a positive impact on the total employment in Henan Province.Secondly,FDI has a long-term stable equilibrium relationship with and the secondary and tertiary industries,but the impact on these two industries are different.Finally,according to present situation empirical analysis and of FDI and employment in Henan Province,this paper finds some problems in promoting employment and put forward policy recommendations aiming at problems.However,FDI in Henan Province still has the following problems in promoting employment:First,the employment scale of foreign-invested companies in Henan Province is small,and the function in promoting employment is limited.Second,the structure of foreign investment in the secondary industry in Henan Province is unreasonable,so the function in promoting employment has not been fully exerted.Third,the regional distribution of foreign direct investment in Henan Province is uneven,and the disparity of employment space has widened.Fourth,the level of talent resources in Henan Province is low,so the employment of foreign enterprises is small.Fifth,the "crowding out effect" of FDI exists,so employment is reduced.In order to expand employment in Henan Province,the following suggestions in the direction of FDI is as follows:expanding the scale of foreign investment to increasing employment,appropriately increasing financial support for introduction of foreign capital in less developed regions such as Jiyuan and Puyang,further optimizing the FDI structure of the secondary industries to increase the employment impact of it,strengthening the training to improve the level of human resources in Henan Province,encouraging FDI flow into emerging industries and industries with high correlation.According to these recommendations,foreign capital can fully play its function in promoting employment in Henan Province.