Research On Employment Quality Effect Of FDI Based On Provincial Panel Data

With the development of globalization and the continuous improvement of China’s opening to the outside world,FDI has played an important role in China’s employment.From the perspective of China’s utilization of FDI,on the one hand,China’s utilization of FDI has experienced three stages: accumulation of experience,rapid development and innovative development.FDI into China is on the rise.However,the proportion of FDI in China’s GDP has been declining since the 20 th century.On the other hand,the regional and industrial distribution of FDI utilization in China is unbalanced.From the perspective of sub-regions,the scale of utilizing FDI in coastal areas occupies an absolute advantage,while the proportion of utilizing FDI in inland areas is small.In terms of industry,FDI used to flow mainly to manufacturing industry,but now it is gradually flowing to the tertiary industry such as real estate industry and financial industry.In terms of the quality of employment in China,according to the employment quality scores of 30 provincial-level administrative regions(excluding Hong Kong,Macao,Taiwan and Tibet),the quality of employment in all provincial-level administrative regions showed a steady upward trend from 2011 to 2018,and the quality of employment improved significantly.By region,the quality of employment in eastern China is higher than that in western China,the quality of employment in southern China is higher than that in northern China,and the gap in central China is smaller.The current relationship between the two is to the left of the extreme point of the U-shaped curve.Although the current growth of FDI will lead to the decline of employment quality,with the further growth of FDI,FDI will promote the improvement of employment quality.Secondly,considering the differences in the utilization of FDI among different regions in China,this paper divides 30 provinces of China into coastal areas and inland areas to compare the impact of FDI on employment quality in different regions.The results show that FDI has a significant inhibiting effect on the employment quality in inland areas,and the negative effect of FDI on the employment quality in coastal areas is not clear enough.Combined with the U-shaped relationship between FDI and employment quality,the coastal areas are closer to the inflection point of the U-shaped curve than the inland areas.Finally,in order to fully analyze the impact of FDI on employment,this paper compares the impact of FDI on employment quality and employment scale.There were differences between the two results.FDI has a U-shaped relationship with both of them,but the relationship between FDI and employment quality is on the left of the extreme point of the U-shaped curve,and the relationship between FDI and employment scale is on the right of the extreme point.FDI has a negative impact on the improvement of employment quality,but a positive impact on the growth of employment scale.The regional results also show that FDI has a positive impact on the growth of employment scale in both coastal areas and inland areas.This is contrary to the impact of FDI on the quality of employment in each region.To realize the healthy development of FDI and employment quality,the government should start from three aspects.Firstly,the government should continue to expand the scale of FDI to promote the long-term development of employment quality and employment scale.Secondly,the government should formulate policies in light of the differences between coastal and inland areas and promote coordinated development among regions.Thirdly,the government should strengthen support for labor security and balance the short-term negative effects of FDI on employment quality.Under these measures,China is bound to enter a new stage of development in which FDI promotes both the quality of employment and the scale of employment.