Analysis of the Influence of FDI on Employment in China
DOI:
https://doi.org/10.54097/z0h2q319Keywords:
FDI; Take up a job; Fixed effect.Abstract
Since the reform and opening up, China continuously improves the investment environment, the foreign direct investment (FDI) continues to grow, which has an impact on all aspects of our economic activity. In recent years, due to the influence of the novel coronavirus epidemic, China's employment situation has fluctuated to a certain extent. How to use foreign direct investment (FDI) to stabilize China's employment situation and increase the number of employment has profound practical significance. Based on this, this paper uses China's 2011-2020 provincial panel data to study the impact of FDI on employment in China. The empirical results show that FDI has a promoting effect on employment in China, and the robustness and endogeneity tests support this conclusion. In view of this, the government should make full and rational use of foreign direct investment, balance the distribution of foreign direct investment between regions, and guide the adjustment of the structure of investment introduction.
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