Research On The Impact Of OFDI Reverse Technology Spillover On China’s Employment

The accelerating process of globalization and the implementation of the "going out" strategy have promoted the vigorous development of China’s foreign direct investment(its English abbreviation is OFDI,which is used to replace foreign direct investment below).At present,China has completed the transformation from a major foreign capital importing country to the world’s largest foreign direct investment exporting country.At the same time,China’s economic development has entered a high-quality stage.In addition,with a series of challenges,such as the slowdown of international economic growth and the impact of the COVID-19,domestic employment pressure is increasing.Technological innovation is the main way to improve labor productivity,which can promote the rational allocation of labor among industries,and OFDI reverse technology spillover is the key path of technological innovation.Therefore,scientific evaluation of the employment effect of OFDI reverse technology spillovers has important practical significance for China to better implement its foreign development strategy and improve its employment level.The research data of this paper is the panel data of 30 provinces and cities in China from 2003 to 2019.Firstly,we use the benchmark regression model to analyze the impact of OFDI Reverse Technology Spillovers on home country employment,and test the intermediary effect of its impact mechanism.Secondly,on the basis of benchmark regression,the interaction regression is used to test whether there is a non-linear impact,and the threshold model is further used to test the threshold characteristics of OFDI Reverse Technology Spillovers on China’s employment as a whole and sub regions.Finally,both endogeneity and robustness tests confirmed the reliability of the results.The results show that:(1)On the whole,the employment effect of OFDI Reverse Technology Spillovers on China presents an overall employment creation effect,but this creation effect is a threshold effect based on absorptive capacity.(2)In the role of increasing employment,there is a threshold for human capital and technology gap.When the threshold is crossed,OFDI reverse technology spillover has a more significant role in promoting employment.In promoting the quality of employment,there is a double threshold for human capital and technology gap.Under the constraints of human capital,OFDI reverse technology spillover has an inverted "U" shape to promote the quality of employment.Under the constraints of technology gap,OFDI reverse technology spillover has a "V" shape to promote the quality of employment.(3)From the results of subregional empirical research,due to different regions,there are obvious differences in the impact of OFDI Reverse Technology Spillovers on China’s employment,among which the eastern region has the most obvious employment promotion effect,while the central and western regions have a relatively weak promotion effect.At the same time,empirical research shows that there is a positive correlation between the degree of OFDI reverse technology spillover and employment effect,that is,the regions with strong OFDI reverse technology spillover have a stronger pulling effect on employment.According to the empirical research conclusion,in order to improve China’s employment level,this paper puts forward the following suggestions:(1)continue to expand the scale of OFDI,promote the coordinated development of OFDI and FDI,and promote the increase of employment.(2)Actively promote the upgrading of industrial structure,effectively improve vocational training,and encourage technological innovation to improve the quality of employment.(3)The government should implement OFDI differentiation strategy according to the absorption capacity foundation and economic development level of each region.