The Impact Of China's OFDI On The Home Country Employment

With the continuous promotion of the process of global integration and the implementation of the "going out" strategy,China's foreign direct investment has entered a stage of vigorous development.With strong growth momentum,China's OFDI has gradually become the world's second largest exporter of foreign direct investment from the capital importing country.At the same time,China's economy has entered a new normal period,from high-speed growth to high-quality growth.This change is accompanied by a series of challenges,such as the slowdown of economic growth,the enhancement of employment substitutability by artificial intelligence and the prominent employment structural contradiction,which aggravates the existing employment pressure in China.Therefore,under the dual background of the rapid development of foreign direct investment and the continuous increase of domestic employment pressure,it is of great practical significance to scientifically evaluate the home country employment effect of outward foreign direct investment for China to realize the "win-win" of "going out" and expanding employment in the new era.This paper takes the provincial panel data from 2005 to 2017 year as the research sample.Firstly,the benchmark regression model is used to test the non-linear effect of OFDI on home country employment.On this basis,the threshold panel model is used to further test the threshold characteristics of OFDI home country employment effect.The empirical results show that:(1)as a whole,OFDI can promote employment in the home country,but the effect is not linear;(2)as for the regional results of provinces and cities,OFDI has significant regional differences on employment in the home country,among which the effect on employment creation in the eastern region is the most significant,while that in the central and western regions is relatively weak;(3)there are significant threshold characteristics in fixed asset investment,technology level,trade openness and labor market rigidity of the region.When these indicators of each province reach or exceed a certain threshold value,it will lead to positive employment creation effect of OFDI,and provinces and cities that do not exceed the threshold value will have employment inhibition effect.Therefore,the government should take differentiated policies and measures according to the actual situation of the eastern,central and western regions: as for the eastern regions with significant employment creation effect,the government should continue to adhere to the policy of "going out",make full use of its own location and economic development advantages to maximize the effect of employment effect of OFDI;as for the central and western regions with weak employment creation effect,the government should increase the support of OFDI,strengthen the investment of R&D cost,speed up the construction of infrastructure and improve the level of human capital,so as to achieve a higher level of effective promotion of home country employment.