A Study On The Host Country Employment Effect Of China’s Direct Investment In ASEAN

Since the 21 st century,China has followed the general trend of regional economic integration,actively participated in international division of labor,and sought economic and trade cooperation.Geographical convenience and the historical origins of friendly cooperation have laid a solid foundation for China-ASEAN cooperation,and the establishment of the China-ASEAN Free Trade Area has greatly facilitated economic and trade cooperation between China and ASEAN countries,especially In terms of investment.In 2009,China and ASEAN signed an investment agreement with ASEAN,and then signed an investment upgrading agreement.However,the convenience brought by it still could not meet the needs of Chinese OFDI entering ASEAN,some of China’s OFDI are still "shut out" by ASEAN countries under the block of investment threshold.At the same time,some international conflicting comments on China will increase ASEAN’s concerns about expanding the freedom of China’s OFDI.Therefore,it is necessary to study the economic benefits brought by China’s OFDI to ASEAN,and employment as the focus of attention in the economic development process of all countries,so,it is more meaningful to study the employment effects of China’s OFDI to ASEAN.First of all,starting from the theory,after analysing the relevant theories of investment and employment,this paper analyzes the employment effect of FDI on the host country,including the employment quantity effect and the employment quality effect: on the one hand,the effect of FDI on the employment quantity of the host country is positive and negative;on the other hand,the effect of FDI on the employment quality of the host country is direct and indirect.Then,this paper empirically analyzes the employment effect of Chinese capital on ASEAN: Firstly,the Cobb-Douglas function model is established to analyze the employment effect of China’s OFDI on ASEAN as a whole,and it is found that the direct effect of China’s OFDI flow on the employment quantity of ASEAN is negative,and the investment stock,that is indirect effect,is positive,while the total effect is a significant positive effect.This shows that China’s investment on ASEAN is conducive to the increase in the quantity of local employment in ASEAN,and in-depth investment cooperation between China and ASEAN can bring significant positive effects to ASEAN’s economy in the long run;secondly,in the empirical analysis of employment quality effects,this paper first tests the relationship between China’s OFDI and ASEAN wage levels and finds that both the flow and the stock have an effect on raising wage levels;finally,this paper analyzes the relationship between China’s OFDI and wage levels in ASEAN countries by using the grey correlation analysis method.The results show that China’s OFDI can most affect the wage level in Vietnam,while Singapore’s wage level is the least affected,which may bring some guidance for China’s Investment strategy to ASEAN countries.Then,afteranalyzing ASEAN as a whole,this paper takes Vietnam,which has the largest correlation coefficient,as the object of detailed analysis,and finds that the increase in the amount of Chinese investment registration in Vietnam has significantly reduced Vietnam’s unemployment rate,that is to say,There is a significant positive effect of China’s OFDI over Vietnam on the number of Vietnam’s jobs,which once again confirms that China’s foreign investment is a "win-win" performance.Immediately after,this article puts forward suggestions based on the results of empirical analysis to promote China’s investment in ASEAN,such as implementing different investment policies for the ten ASEAN countries.