Study On The Influences Of Chinese Outward Foreign Direct Investment On Domestic Employment

With the acceleration of the global integration process,the economic connections between various countries in the world become increasingly close.Since the 21st century,China has made rapid development in its outwards direct investment.In 2015,Chinese OFDI flows exceeded its IFDI,which achieved the net output of capital for the first time.It means OFDI plays an increasingly important role in Chinese economic system.In the meantime,China is facing increasingly huge employment pressure as its national economy enjoys a slower increase.In this context,some issues have occurred.At present,the size of the population to be employed is becoming larger and larger,the structural contradiction of employment is becoming more and more prominent.The contradiction between the high demand for employment quality and the current situation of China’s employment quality has become increasingly prominent.Such issues are currently faced by China.On the one hand,China enjoys fast development in its OFDI.On the other hand,China faces huge pressure from employment.What are the influences of Chinese OFDI on domestic employment?Is it positive or negative?What channels does IFDI affect the domestic employment of China through?Based on the above-mentioned issues,the thesis summaries and concludes relevant research literature carried out by domestic and foreign scholars in the past years.It also analyzes the transmission mechanism through which OFDI influences the employment of the host country from theories.OFDI affects the employment scale in the host country by exerting influences on a country’s international trade,domestic investment and international balance of payments;meanwhile,it directly affects the employment structure in the host country by exerting influences on the industrial structure,technical level and human capital.By constructing different empirical models,it carries out a quantitative analysis of the influences of OFDI on Chinese employment scale,employment structure and employment quality.Regarding the employment scale,the promotion exerted by OFDI on Chinese employment scale is bigger that its substitution.This promotion is especially significant in economically-developed regions;regarding the employment structure,OFDI lowers the proportion of practitioners in the first industry and increases the proportion of practitioners in the second or third industry,which promotes Chinese labor forces to shift from the first industry to the second and third industries and optimizes Chinese employment structure at the industry level.Regarding employment quality,there exist significant correlations between OFDI and regional salary level,which improves the employment quality of Chinese labor forces.Overall,OFDI is capable of alleviating Chinese current employment difficulty effectively.Combining with Chinese specific national conditions,the thesis offers policy advice to improve Chinese employment situation from the selection of investing types,investing subjects and investment locations.