Research On The Impact Of FDI On Employment

Along with the rapid development of service industry,the structure of service industry has gradually changed from traditional service industry to the modern service industry dominated by producer services.As Intermediate input industries,producer services have a strong driving effect in coordinating the overall development of the national economy and has great potential in absorbing labor.The data shows that in recent years,FDI absorbed by China's producer services have risen sharply,and at the same time,employment in the producer services has also shown rapid growth.Therefore,understanding the relationship between FDI and employment in producer services has important practical significance for alleviating the current employment pressure as well as promoting the upgrading of the employment structure in China.Based on the combination of theoretical and empirical study,the purpose of this thesis is to explore the impact of producer services FDI on both the quantity and the quality of employment through qualitative and quantitative analysis.First of all,this thesis defines the concept of producer services,and determines the five sub-sectors of producer services studied in this thesis by calculating the intermediate demand rate.Then through the combing of relevant literatures,the theoretical connection between FDI and employment in producer services can be explored.Then,through sorting out the relevant data in recent years,this thesis makes a quantitative analysis of China's FDI and employment in productive services,so as to explore their characteristics and the relevance of their changes.Thus,a practical basis can be provided for the subsequent theoretical mechanism.The analysis results show that the FDI and employment of producer services in China both show an upward trend.Next,the study moves to the theoretical analysis.According to the literature review and status analysis this thesis systematically analyzes the theoretical mechanism and influence path of the impact of FDI on employment in producer services from two aspects: the employment quantity and the quality of employment.In terms of the employment quantity,it is mainly analyzed from the direct effect and the indirect effect.With regard to the employment quality,the study is focused on technology spillover effect,capital fill-in effect and income effectIn addition,a further empirical analysis is taken into the impact of FDI on employment in producer services after the establishment of empirical models deriving from the Douglas production function.It uses both the national panel data of five industries in producer services from 2006 to 2015 and the panel data of producer services in fifteen provinces in China in 2006-2016 years to make a quantitative analysis.The results show that: FDI in producer services may have a negative impact on employment quantity,but it can increase average wages and improve the quality of employment.Finally,on the basis of the preliminary conclusions drawn from theoretical and empirical analysis,this thesis puts forward the supporting policy suggestions in order to ease employment pressure and promote employment quality in China by make full use of producer services FDI.