The Impact Of OFDI On Labor Income Share ——Based On Labor Bargaining Power

With the deepening of the global cooperation,the impact of open economy on labor income share has become increasingly important.In the context of globalization,international division of labor is driven by international investment to form a new pattern of factor allocation,and international investment has become an important way for China to participate in international division of labor,so it is necessary to study the fluctuation of China’s labor income share from the perspective of OFDI.Globalization has worsened labor-management conflicts,and the role of labor bargaining power in the open economy has played a prominent role in labor income share.Based on the basic model of labor income share changes,this paper analyzes the influence machine of OFDI on labor income share through labor bargaining power from the perspective of labor supply and demand and labor protection,and proposes 4theoretical hypotheses,then uses employment statistics to estimate labor income share of 31 provinces in Chinese mainland.Finally,an empirical analysis was performed using2 sls method in China’s inter-provincial panel data from 2004 to 2017.The results show that China’s OFDI can improve labor income share by improving the relationship between labor supply and demand and increasing the level of labor security;the east has the most significant effect on improving labor supply and demand,but it has a limited effect on increasing labor income share by improve labor security.Besides,increasing the level of economic development,increasing fiscal expenditures and upgrading the industrial structure can all promote the increase of labor income shares,while capital deepening and technological progress have a restraining effect on labor income share.China needs to balance labor bargaining power while developing outward foreign direct investment,promote industrial upgrading through high-quality OFDI projects,promote reform of the household registration system to reduce labor mobility barriers,strengthen labor protection,and strengthen labor union mediation in labor dispute settlement.