A Research On Change Of Foreign Capital Access And Inter-provincial Population Migration

The rapid development of China's open economy has received widespread attention.At present,the frequent revision of China's foreign investment policy has provided a lot of conveniences for expanding the scope and depth of foreign investment.And it also shows that China attaches more importance to the quality of foreign investment.Foreign capital offers not only capital accumulation but also advanced technology and management experience,which plays an important role in creating jobs and raising wages.At the same time,China 's population migration has also received widespread attention,especially when the large-scale,longdistance and inter-provincial migration of our population is rare globally.From the perspective of foreign investment policy,this article studies whether changes in foreign investment policies will affect the inter-provincial migration.This article first analyzes the current situation of China 's foreign investment utilization,foreign investment policy,and population migration.It is found that even in the Yangtze River Delta with a high degree of openness,there is still a significant gap in the level of foreign investment opening.Then this article uses the relaxation of foreign investment policy as a policy shock to build the DID model and use the relevant data from 1990 to 2010 to construct indicators.The study found that the migration rate of population from other provinces are positively associated with changes of opening degree of foreign investment after the policy change.This effect is more significant to those who have not received higher education,those whose household registration has not been moved with them,and those who have an agricultural household registration.In the past ten years,with the large amount of foreign capital flowing into high-tech industries and service industries,enterprises have become increasingly demanding on the quality of labor.In addition,on the basis of existing research,this paper further studies the impact of the entry of foreign capital on local wage levels and employment opportunities after the relaxation of foreign capital control.The specific manifestation is that a looser foreign policy can improve the overall salary and welfare level of the local area,increase the number of jobs in industrial foreign-funded enterprises and increase the demand for professional and technical labor.Combined with the above-mentioned migration of different groups of people,it also shows that,to some extent,there is a mismatch between labor demand and labor supply.The research results of this paper also show that the entry of foreign capital has no obvious effect on the substitution and crowding out of domestic-funded enterprises and labor-intensive industries.Finally,this article makes recommendations from the government,enterprise,and individual levels.The government needs to keep pace with the times at the policy level,pay attention to the development of industries and regions,reasonably guide the distribution of foreign investment,and balance the development of industries and regions while expanding the degree of openness.In addition,the government should pay attention to the rational allocation of public resources,protect the rights of citizens,and promote the free flow of labor elements in the market.Enterprises need to make good use of the demonstration effect and creation effect brought by foreign investment to improve their core competitiveness.Individuals need to combine their own ability,employment needs and other practical circumstances to make a reasonable choice of migration.