Research On The Influence Of Foreign Direct Investment On The Allocation Of Labor Resources In China

The scale of China to attract foreign direct investment continues to expand with the deepening of reform and opening up.In 1990,China became the largest host country to attract FDI to developing countries and regions.Although the current economy situation in the world affected the development of FDI,but China remains the most attractive economy for FDI.China is the world’s most populous country.In the process of economic market,the rational allocation of labor resources affect the quality of China’s economic development.From the reform and opening up till nowadays,FDI plays the key role in promoting China’s economic development.The rational allocation of labor resources is an important aspect of economic development,the large inflow of FDI has promoted China’s employment to a certain extent.But the corresponding impact of FDI on labor resource and investment structure are changing with the distribution of FDI in China’s regions.Therefore,this paper is studying the impact of FDI on the allocation of labor resources in China in order to better understanding the relationship between FDI and the allocation of labor resources and promoting the positive impact of FDI on the allocation of labor resources.This paper is based on the theoretical definition of FDI,the allocation of labor resources and the optimal allocation mechanism of FDI labor resources.It mainly focuses on the impact of FDI on the allocation of labor resources and on the ways of improvement of the allocation of labor resources.This paper puts forward some suggestions to improve the allocation of labor resources according to theoretical,practical and empirical analysis of the impact of FDI on the allocation of labor resources.In theoretical aspect,it summarizes the mechanism of FDI to optimize the allocation of labor resources.In practical aspect,it analyzes the current situation of China’s actual use of FDI and the allocation of labor resources.In empirical analysis aspect,it uses the fixed effect model to investigate the impact and heterogeneity of FDI on the allocation of labor resources in China’s provinces during 2003 to 2018.In conclusion,China’s actual use of FDI is characterized by annually increasing scale,diversification of sources and investment methods,unbalanced regional distribution,etc.There are unreasonable phenomena in the allocation of labor resources in China.From the perspective of the demand of local industrial development for labor resources,the eastern region is characterized by insufficient.At the same time,the central and western regions are characterized by excessive allocation of labor resources.From the perspective of the whole country,FDI has an improved effect on the allocation of labor resources in China.But in regional perspective,there is a heterogeneity in the impact of FDI on the allocation of labor resources: the negative impact on the allocation of labor resources in the eastern region and the positive impact in the central and western regions.