Empirical Investigation of FDI Impact on China´s Employment

Author

Li-wei, CHENG ; He, Liang

Author_Institution

Sch. of Manage., Harbin Inst. of Technol.

fYear

2006

fDate

5-7 Oct. 2006

Firstpage

1123

Lastpage

1127

Abstract

At present, inward FDI plays an important role in China´s economic development, and also has exerted powerful influence on employment. An empirical analysis of Inward FDI´s effect on China´s employment in the time period of 1984 to 2004 is reported in this paper, utilizing co-integration, error correct model (ECM) and Granger causality tests. The result shows that inward FDI has a positive and statistically significant effect on China´s employment in the long and short run. It also indicates that the stimulation of FDI to economic growth, trade performance and employment of interrelated industry has become major factors affecting China´s employment. The Granger causality test reveals that causality between inward FDI Granger and China´s employment. Finally, some recommendations on future government policy are given in this work as well

Keywords

employment; government policies; industrial economics; international trade; investment; China economic development; China employment; Granger causality tests; cointegration; economic growth; empirical investigation; error correct model; government policy; interrelated industry; inward foreign direct investment; trade performance; Electrochemical machining; Employment; Energy management; Error correction; Fault detection; Industrial economics; Investments; Power generation economics; Technology management; Testing; Employment effects; Error correction model; FDI; Granger causality test;

fLanguage

English

Publisher

ieee

Conference_Titel

Management Science and Engineering, 2006. ICMSE '06. 2006 International Conference on

Conference_Location

Lille

Print_ISBN

7-5603-2355-3

Type

conf

DOI

10.1109/ICMSE.2006.314200

Filename

4105063