Empirical study of capital and labor allocation efficiency difference between domestic and foreign capital in China’s manufacturing iIndustry

This paper calculates capital allocation efficiency (short for CAE) of the total, domestic and foreign capital (3-funds enterprises) in Chinapsilas manufacturing industry and explores this thought into the allocation of labor. Yearly CAE and labor allocation efficiency (short for LAE) are calculated out by sectional data model while capital and LAE of the total, domestic and foreign capital in different factor intensive industries and different capital intensive industries are calculated out by panel data model. CAE of domestic and foreign capital is insignificant in Chinapsilas manufacturing industry; CAE of foreign capital is significantly higher than that of domestic capital while LAE of domestic capital is significantly higher than that of foreign capital; spontaneity investment level of foreign capital is higher than that of domestic capital because of the government support; spontaneity labor allocation of domestic capital is significantly negative and lower than that of foreign capital because of the segmentation of labor market. Therefore the fundamental methods to improve capital and LAE and make them develop coordinately are to establish the coordinate development of capital market and labor market, pay the same attention to capital and labor of domestic and foreign capital, remove the barrier of labor market and establish the uniform labor market.