China's ODFI And Employment Effect In Home Country

In the five years from the implementation of the “One Belt,One Road” initiative in China in 2013,China's direct investment in countries along the “Belt and Road” has continued to grow.However,China's expansion of direct investment scale in countries along the route will inevitably lead to changes in China's demand for factors.At the same time,China is facing increasing employment pressures,and the contradiction between employment supply and demand and structural contradictions are becoming increasingly apparent.Therefore,this paper is devoted to analyzing the employment effect of China's direct investment in the country along the “Belt and Road” from the employment level,trying to answer the following question: Will China's direct investment in countries along the route have an impact on domestic employment? If it has an impact,is it positive or negative? Can direct investment in countries along the route provide a new way of thinking for China to ease employment pressure?This paper first summarizes the theory of the impact of foreign direct investment on the employment of the home country,and then analyzes the current situation of China's direct investment in countries along the line and the status of domestic employment in China.Then the least square method is used to construct the OLS model to study the impact of direct investment in the countries along the line on China's total employment,and the impact of its investment on China's employment structure is studied by VAR model,impulse response function and method decomposition.The proportion of employment in the industry and the tertiary industry is measured.From the results of the empirical model,direct investment in countries along the line has a positive effect on the total employment in China.The impact of direct investment on the employment of the secondary industry in China is greater than that.Employment impact of the tertiary industry.Conclusions are proposed: the combination of foreign direct investment and domestic investment,the hierarchical selection of investment industries,the expansion of investment in domestic industries and use of foreign investment.