Research On Employment Effect Of Guangxi FDI

Guangxi is a province with outstanding dual economic characteristics.There is still a gap between its economic development and other developed provinces.The inflow of FDI in Guangxi has always been relatively small,and the inflow of industries is too concentrated.Most of the FDI inflows into industrial industries.Other industries such as agriculture,forestry,animal husbandry,fishery,transportation and other industries absorb very little FDI,even in some years is zero.In 2013,President Xi Jinping put forward the strategy of "one belt,one road".Subsequently,Guangxi's strategic position as the "one belt,one road" convergence portal was confirmed.Guangxi links inland provinces westward and radiates outward to Southeast Asia,and its geographical advantages begin to highlight.In the future,Guangxi will become the preferred area of FDI.A large number of FDI will choose Guangxi as the investment area,which will bring great impetus to employment growth in Guangxi and make important contributions to regional economic development.This paper combines theoretical analysis with empirical analysis to analyze the employment effect of FDI in Guangxi.Firstly,this paper clarifies the relationship between investment and employment by studying Keynesian investment and employment theory,Lewis's "dual economic model" and "two gap model".Then it introduces the transmission channels of FDI employment effect,one is investment transmission channel,the other is trade transmission channel,the third is technology spillover transmission channel,trying to comprehensively explain the mechanism of FDI employment effect.Combining theoretical analysis with previous literature studies,this paper divides the employment effect of FDI into direct effect and indirect effect.The direct employment effect refers to the impact of direct employment of employees on employment after the entry of FDI.The indirect employment effect refers to the change in employment of other enterprises after the entry of FDI.The direct employment effect can be divided into creation effect and destruction effect.Creation effect and destruction effect can be generated in various ways.For example,when FDI enters the host country in the form of greenfield investment,investment leads to an increase in employment.If it is entered by means of M&A investment,general foreign investment will be laid off,causing a destructive effect.The effect of direct employment depends on the size of the two effects.The indirect employment effect is pulling effect and destructive effect.The two effects can also be produced in many ways.For example,when FDI enters the downstream enterprises of the industrial chain,the increase in demand for raw materials of upstream enterprises causes the expansion of production,which indirectly causes an increase in labor demand,resulting in employment pulling effects.If the entry of FDI leads to the failure of domestic enterprises to compete,it will have a destructive effect.The magnitude of the employment effect depends on the size of the two effects.Using the panel data of various industries in Guangxi from 2004 to 2017,this paper uses the one-step differential GMM to conduct empirical analysis.Empirical research finds that the direct employment effect of FDI in Guangxi is significant,but there is a problem that the effect is too small.This paper argues that on the one hand,the inflow of FDI is too small,and on the other hand,the inflow of FDI into industries is too concentrated.At the same time,the empirical results show that the indirect employment effect of FDI is significant.This paper believes that FDI flows into industries with a large degree ofindustrial relevance and has a greater impact on other enterprises,so the indirect employment effcct of FDI is significant.In addition,the FDI indirect employment effect is as small as the direct effect.Based on the comprehensive research,this paper proposes:First,by optimizing the foreign investment environment.improving service levels,giving full play to Guangxi's geographical advantages,promoting diversification and introduction of FDI,increasing the introduction of FDI,and expanding the scale of foreign investment.Second,to guide the flow of FDI investment,narrow the industry gap,not only to introduce capital-intensive FDI,but also to introduce labor-intensive FDI,in order to increase the employment level of various industries to a greater extent.