Research On The Impact Of Foreign Direct Investment On Employment In Central China

With the expansion of foreign direct investment,the market competition in the eastern region(the three regions of China in the eastern,central and western regions involved in this paper)has become more intense,and labor costs have gradually increased.The central part is close to the eastern part,and has the advantage of lower labor price and more preferential policies.However,scholars have done little research on the central region.In recent years,while the scale of FDI in the central region has expanded,it also has an important impact on employment.Therefore,a detailed study of the impact of FDI on employment in the central region is of great significance.Based on the relevant research results of FDI and employment,this paper elaborates the impact of FDI on employment in central China from three aspects: employment volume,employment structure and employment quality.In the part of current situation description,this paper focuses on the gap between FDI and employment in the central and Eastern regions.By comparing the two,it is found that FDI and employment in the central region are roughly consistent with the development of the whole country,but differ from those in the eastern and western regions in terms of industry distribution and specific amount.At the same time,there are also significant differences in economic strength and industry distribution among provinces in the central region,which just proves the unbalanced development of China from a regional perspective.In the empirical part,due to the availability of data,this paper uses the actual data of FDI and employment in the central provinces from 2005 to 2016,and selects the effect model through Hausman test,and obtains the variable relationship.Then the robustness test should confirm the test result again.The empirical results show that FDI is significantly positively correlated with the total employment in the central region,and the increase in FDI will create more employment opportunities.From the perspective of industrial structure,the impact of FDI on the employment of the primary and tertiary industries is not significant,which may be less affected by the first and third industries,and the limited impact on the empirical results,as well as the low degree of technicalization of the primary industry,foreign direct investment.It is related to the uneven distribution of industries in the tertiary industry;the employment of the secondary industry in the central region is significantly positively correlated.The advanced technology of FDI will help the technology upgrade of the secondary industry,thus promoting the development of the secondary industry and promoting employment.In terms of the quality of employment,FDI significantly affects the average wage of employed people in the central region.The positive correlation between the two is positive.With the expansion of foreign investment,the average wage level in the central region will also be improved to some extent.The main innovation of this paper is to first select the central region as the research object,and comprehensively analyze the impact of FDI on employment in the central region.At the same time,data selection and processing are also optimized,not only converting nominal data of FDI and employment in central provinces into actual data,to reduce the impact of price factors on the empirical results,but also selecting enrollment rather than the number of students or graduates to better reflect social needs.In addition,this paper further enriches the variables,adds more factors that may affect the employment volume and quality,and makes a more comprehensive analysis of the impact of FDI on employment in central China.Finally,based on the current situation description and empirical results,this paper puts forward four suggestions: strengthening strategic support,optimizing industrial structure,strengthening infrastructure construction,improving the quality of education and training,hoping to help the development of FDI and employment in the central region.