| For a long time,China is the most populous developing country in the world with the largest population and labor resources.Low labor costs are an important factor in attracting foreign direct investment in the Yangtze River Delta region.However,while this element of the labor force is promoting the sustained and rapid economic growth in the Yangtze River Delta region,labor costs have also continued to rise.Compared with many countries in Asia and China’s inland regions,labor costs in the Yangtze River Delta region no longer have a competitive advantage.Therefore,research on the impact of rising labor costs on attracting FDI in the Yangtze River Delta region is of great practical significance for the more active and effective use of foreign capital in the Yangtze River Delta region.Based on the investment theories of international production eclectic theory and investment-induced factor combination theory,this thesis adopts literature analysis and empirical analysis methods to study the impact of rising labor costs on attracting FDI in the Yangtze River Delta region.Firstly,a descriptive analysis of the status quo of labor costs in the Yangtze River Delta region and the status quo of attracting FDI is carried out.The study found that the labor cost in the Yangtze River Delta region has been rising,which is higher than the national average and higher than the average levels of Southeast Asian countries such as Vietnam and Thailand,but lower than that of Japan,Singapore and other developed countries;actual use of foreign direct investment in the Yangtze River Delta Region The amount has continued to increase,and the proportion of the tertiary industry has increased year by year.Hong Kong,China has always occupied the top of the country of origin(region).Based on the theoretical analysis,based on the panel data of 18 cities in the Yangtze River Delta region from 2005 to 2016,the panel data regression model was used to empirically study the impact of rising labor costs on attracting FDI in the Yangtze River Delta region.The study found that from the perspective of the total area,there is a significant positive correlation between rising labor costs and attracting FDI in the Yangtze River Delta region.The increase in labor costs has a positive effect on attracting FDI in the Yangtze River Delta region;The correlation between the two cities and the degree of correlation are different.Shanghai and Zhejiang provinces still maintain a positive relationship,while Jiangsu province shows a significant negative correlation.Finally,based on the research results and analysis,this thesis puts forward corresponding policy recommendations:First,adjust the objectives of foreign capital utilization,improve the comprehensive advantages and overall benefits of foreign capital utilization,and promote the organic integration of foreign capital,technology,and intelligence,and realize economic and social development.Coordinated development with ecology.The second is to strengthen the regional cooperation in the use of foreign capital and realize the rational flow and open sharing of resource elements such as people flow,logistics,capital flow,and information flow in the region;and the third is to clarify the focus of foreign capital utilization,and strengthen cooperation with Shanghai,Jiangsu,and China.Zhejiang sets up investment plans and policies according to local conditions;Fourth,it changes the concept of the use of foreign capital,strengthens human capital investment,emphasizes the improvement of the quality and skills of laborers,makes use of human resources advantages to allow foreign capitals to stay for a long time,and finally,improves the environment for the use of foreign capital and establishes soundness.Related systems,improve the level of government’s public service and management services,strengthen the awareness of intellectual property protection,and gradually optimize the "soft environment" based on "hard environment". |
