Impact Of FDI On Employment And Wage Level In China

Foreign Direct Investment(hereinafter referred to as FDI)has played a crucial role in the development of China's reform and opening up over the past four decades,playing an irreplaceable role in China's economic development,industrial structure and employment level.However,in the context of the current trade war between China and the United States,as the largest recipient of FDI to China,the United States is bound to cause changes in the investment export to China,and there will not be a series of negative effects on an economy.This paper aims to explore the impact of FDI on China's economy from multiple perspectives of employment by combining theory with practice.Based on the above background and significance,the author has read a large number of relevant references,learned a lot of relevant theories of economics,and referred to the previous research results of many scholars,and found that more than half of the studies showed that FDI had a significant promoting effect on the employment status of the host country.Early based on the above basis,this article selects 1999-2017 in 29 provinces and cities in our country foreign direct investment,foreign investment unit employment and foreign direct investment balance panel data of the average wage employment,and in the yuan against the dollar is the official central parity rate,when the consumer price index data processing,panel data vector autoregressive Model(PVAR Model),quantitative analysis,and use the impulse response function and variance decomposition to describe system within the influence degree of the change of each variable on other variables and the degree of explanation.Before doing the empirical analysis,this paper made China's FDI and employment and wage level present situation analysis,through the analysis of the FDI in our country development present situation,analysis of China's foreign direct investment unit employment as a whole and in the overall level of salaries of employees of foreign direct investment,a total of three section descriptive analysis the relationship between FDI and employment and wages,points in brief in this paper,the overall correlation and regional differences.According to the results of impulse response function and variance decomposition,FDI has a significant promoting effect on the number of employees and their wages.Accordingly,the employment number and wage level also have a negative effect on FDI,and sufficient cheap labor force plays a positive role in attracting FDI inflow.Based on the above research conclusions,this paper puts forward relevant policy Suggestions:firstly,we should actively introduce FDI,which plays a good role in promoting China's economy and employment.Secondly,when introducing large quantities of FDI stock,we should pay attention to the quality of FDI and avoid labor-intensive and resource-intensive FDI.Finally,we should not only improve the competitiveness of domestic enterprises,but also actively guide FDI to the central and western regions.