An Analysis Of The Effect Of OFDI In Developing Countries On Chinese Employment

Currently,China is the second largest foreign direct investment country in the world and more than 80% of Chinese foreign direct investment stock store in developing economies.The employment channels have gradually increased.the number of laborers in various fields has gradually increased.the openness of economic development has gradually increased.In recent years,China has proposed the “One Belt,One Road”global development initiative,which has effectively promoted the development of an open economy.Therefore,more and more developing economies have joined the initiative.at the same time,foreign investment gradually concentrate on these countries.With the gradual increase in the stock of direct investment in developing economies,China is also facing serious employment problems.The problems of huge labor force population and low labor quality are outstanding.Therefore,this paper will mainly explore the effect of the OFDI in developing countries on domestic employment in China.Based on the available data,this paper uses qualitative method and quantitative method.establishing an econometric model and ADF test.using the OLS method.It take the investment in developing countries along the “Belt and Road” as an example.Studying the impact of OFDI in developing countries on total employment and employment in specific industries in China.According to the model results,the total employment is positive.the effect on employment in specific industries is different.OFDI in developing countries has a significant positive effect on the employment of leasing and business services,and has a significant positive effect on the wholesale,retail trade,transportation and storage.It has a significant negative effect on transportation storage and postal industry.OFDI in developing countries don't promote mining's and manufacturing's employment.This study has reference significance in economic development and employment issues.The article concludes with policy recommendations about OFDI in developing countries and employment.