Analysis On The Influence Of Foreign Direct Investment On Regional Employment Quantity

Over the past 40 years of reform and opening up,foreign direct investment has gradually given important impetus to China’s economic development.Through industrial optimization and technology spillover,foreign direct investment also has a positive impact on employment in China.As a country with a large population,China ’s employment situation is becoming increasingly severe under the pressure of economic downturn.The report of the 19 th National Congress of the CPC also reemphasized the importance of employment,and clearly proposed that higher quality and fuller employment should be achieved.At the same time,the imbalanced regional economic development in China should also be focused on.The inflow of foreign direct investment tilting towards the eastern region will aggravate regional differences,thus eventually leading to the further loss of labor and employment deterioration in the central and western regions that are already disadvantaged.In order to better compare the difference of the driving effect of foreign direct investment on the employment quantity in different regions,the paper selects Guangdong,Henan and Shaanxi as the representative provinces in the eastern,central and western regions,makes a comparative analysis of the total amount and structure of foreign direct investment and employment in these provinces,and holds that the difference in employment quantity may be caused by the structure,source and investment mode of foreign direct investment.In the empirical analysis,based on the amount of foreign direct investment and employment in the three provinces from 1985 to 2017,the paper analyzes the long-term equilibrium relationship between the two variables by establishing the OLS regression model and analyzes the dynamic relationship between the two variables by establishing the VEC model and by using Impulse Response Function(IRF).The final conclusion is: as for the long-term equilibrium relationship,the foreign direct investment can promote employment in the three provinces,and the employment effect of foreign direct investment in Guangdong province is stronger than that of Henan and Shaanxi provinces.As for the dynamic relationship,foreign direct investment in Guangdong province will continue to have a positive impact on employment,whilethat of Henan and Shaanxi provinces will crowd out local employment at the initial stage of introduction,but the effect has gradually changed from crowding-out to crowding-in over time.Finally,combined with the status analysis and empirical conclusions,this paper believes that we should optimize the source structure and industrial structure of foreign direct investment,stimulate the spillover effect of foreign direct investment,increase the investment in education and other means to enhance the employment creation effect and promotion effect of Henan and Shaanxi provinces,so as to enhance the driving role of the employment and improve the level of employment.