The Impact Of Fixed Asset Investment On Tertiary Industry Employment In China

Fixed asset investment can not only drive economic growth,but also is an important way to promote employment.This paper studies the impact of China’s fixed asset investment on the employment growth of the tertiary industry from both theoretical and empirical aspects.In terms of theory,the direct and indirect effects of fixed asset investment on employment growth are first analyzed,and the relationship between fixed asset investment of three industries and employment growth in the tertiary industry is analyzed by using Lachmann’s heterogeneous capital theory.The employment effect of fixed asset investment in the tertiary industry is decomposed into total investment effect,structural change effect and factor substitution effect.In terms of empirical research,the provincial panel data from 2003 to 2017 are adopted and the systematic GMM method is used to empirically analyze the employment effect of fixed asset investment on the tertiary industry.The findings are as follows :(1)the total fixed asset investment of three industries has a positive employment effect on the tertiary industry.(2)the fixed assets of the primary industry not only have a negative effect on the overall employment population growth of the tertiary industry,but also have a negative effect on the employment growth of the two subsectors of the tertiary industry,producer services and consumer services.(3)the fixed asset investment in the secondary industry and the fixed asset investment in the tertiary industry have positive effects on the overall employment growth of the tertiary industry and the employment growth of the two subsectors of the tertiary industry.The empirical results also mean that the heterogeneity of the fixed asset investment of three industries results in different economic effects on the employment growth of the tertiary industry.In addition,the calculation results of factor decomposition method show that from 2013 to 2017,the total investment effect of fixed asset investment in various sectors of the tertiary industry on the employment growth of the tertiary industry is greater than zero.Although the structural change effect and factor substitution effect produced negative effects in some years,the sum of the three effects was still greater than zero.According to the research conclusions,this study puts forward countermeasures and suggestions: improve the rate of return of capital investment through investment tax credit,tax reduction and fee reduction,stimulate the growth of fixed asset investment in the secondary industry and tertiary industry to promote the growth of employment in the tertiary industry,and improve the employment structure;encourage the development of the tertiary industry and unleash its potential for job creation.