Dynamic Effect and Regional Difference of Foreign Direct Investment on the Employment in China ——GMM Estimation Based on Dynamic Panel Data Model
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Dynamic Effect and Regional Difference of Foreign Direct Investment on the Employment in China ——GMM Estimation Based on Dynamic Panel Data Model
DING Cui-cui1, GUO Qing-ran1,2
1.School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China; 2.School of Economics ＆ Management, Henan Institute of Science and Technology, Xinxiang 453003, China
Abstract Based on the inter-provincial panel data between 1996 and 2011 and by using the Generalized Method of Moment(GMM)of Dynamic Panel Data Model , this paper makes a study of the dynamic effect and regional difference of foreign direct investment(FDI)on the employment in China. The results show that the regional difference about the effect of FDI on the employment is significant in China and FDI has a significant crowding-out effect on China’s regional employment. Only FDI last year has a significant creation effect on employment of the Central China while FDI in other periods and regions has a negative effect on the employment this year. Therefore, the introduction of FDI in China cannot absorb more workforces, and it is very difficult to rely on FDI to alleviate domestic employment pressure.
DING Cui-Cui,GUO Qiang-Ran. Dynamic Effect and Regional Difference of Foreign Direct Investment on the Employment in China ——GMM Estimation Based on Dynamic Panel Data Model. Economic Survey, 2014, 31(1): 062.
2014, Vol. 31 
