scholarly journals A Study of Three Sectors Employment Effects Resulting from Foreign Direct Investment- Empirical Analysis on the Data from Shanghai

Author(s):  
Ko Po-Sheng ◽  
Wu Cheng-Chung ◽  
Mai Ying-Shih ◽  
Xu Zhongrong

With the development of China's reform policy, China's economy has integrating into the global economy. As a result, more and more foreign capital continues to flow into China. Since 1990, foreign direct investment (FDI) was mainly concentrated in the Yangtze River Delta region, and Shanghai enjoyed strong economic strength, thanks to its abundant human resources and convenient transportation network; as these are excellent qualities for attracting foreign investment, Shanghai became one of the major cities attracting FDI. FDI has had a tremendous impact on many aspects in Shanghai, including employment. Therefore, Shanghai was chosen as the research object of this paper. This paper is organized as follows. Firstly, a theoretical analysis of the employment effects of FDI is presented. Secondly, after combining the actual utilization of FDI and employment in Shanghai, an empirical analysis of the effects of FDI on employment's quantity, employment's distribution and employment quality is carried out by collecting relevant data and establishing regression models. This study finds that while FDI does exert a positive influence on the quantity of employment in Shanghai's tertiary industry, it is not conducive to primary and secondary industries. In addition, FDI has shown positive and negative impacts on the quality of employment. Lastly, some suggestions are proposed to enhance the positive role of FDI on employment.

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-7
Author(s):  
Po Sheng Ko ◽  
Kuo Chih Lu ◽  
Cheng Chung Wu ◽  
Tiantong Yuan

In recent four decades, policy reform has integrated China’s economy into global. Since 1981, foreign direct investment (FDI) has been gradually flowing into the Yangtze River Delta region. As a result, this region has enjoyed strong economic strength based on abundant human resources and convenient transportation network. Shanghai, the key city, has become one of the major cites attracting FDI; meanwhile, FDI also has had a tremendous impact on Shanghai’s economic development, including employment. To sum up, Shanghai has been chosen as the research object in this paper. This research is organized by four parts: firstly, a theoretical analysis of employment effects of FDI is presented; secondly, after combining the actual utilization of FDI and employment in Shanghai, an empirical analysis of the effects of FDI on employment quantity and employment quality is carried out by data and regression models; thirdly, this research found FDI has exerted a negative influence on employment quantity in Shanghai; moreover, FDI also has shown a positive impact on the employment quality; and finally, the paper has proposed some suggestions to FDI’s utility in the future.


2013 ◽  
Vol 67 (4) ◽  
pp. 863-888 ◽  
Author(s):  
Stephen G. Brooks

AbstractPolitical scientists and economists have long been interested in the role of special interests in the policymaking process. In the past few years, a series of important new books have argued forcefully that the lobbying activities of economic actors have an important influence on the prospects for war and peace. All of these analyses claim that whether economic actors enhance or decrease the likelihood of conflict ultimately depends on the domestic political balance between economic actors who have a strong vested interest in pushing for peace versus those that do not. I advance two contrary arguments. At least among the advanced states, I posit there are no longer any economic actors who will be favorable toward war and who will lobby the government with this preference. All of the identified mechanisms that previously contributed to such lobbying in these states have been swept away with the end of colonialism and the rise of economic globalization. In particular, I show that the current structure of the global economy now makes it feasible for foreign direct investment to serve as an effective substitute for conquest in a way that was not possible in previous eras. My second argument concerns those economic actors in advanced states with a preference for peace. I posit that it has become unnecessary for them to directly lobby the government to avoid war on economic grounds because economic globalization—the accumulation of decisions by economic actors throughout the globe—now has sufficiently clear economic incentives for leaders.


Istoriya ◽  
2021 ◽  
Vol 12 (11 (109)) ◽  
pp. 0
Author(s):  
Alexey Kuznetsov

The article highlights three stages of the formation of multinationals from developing countries. Although first Argentine TNCs appeared at the turn of the 19th — 20th centuries, in the majority of the Global South countries TNCs appeared in the 1960s — 1980s. With the collapse of the bipolar world order, which in many developing countries was accompanied by significant internal political and economic transformations, the second stage of foreign expansion of TNCs from the Global South began. Indeed, in 1990 they accounted for 6 % of global outward foreign direct investment stock, while the figure was 10 % by the end of 2005. We date the beginning of the third stage to the financial and economic crisis of 2007—2009, since multinationals from developing countries as a whole are more successfully overcoming the period of turbulence in the global economy. By the end of 2020, they accounted for 22 % of global outward foreign direct investment stock, and during the COVID-19 pandemic crisis they generally exported more than 50% of the capital. The modern foreign expansion of such TNCs has many reasons, differs greatly from country to country, and often differs slightly from the specifics of Western multinationals. At the same time, initially, “late internationalization” in developing countries had two main vectors — the use of new opportunities for South — South cooperation and overcoming, through the creation of subsidiaries in highly developed countries, the shortcomings of the business environment of “catching up” countries.


Author(s):  
Kijpokin Kasemsap

This chapter indicates the overview of Foreign Direct Investment (FDI); FDI entries and export; FDI and spillover effects; FDI, human capital, and absorptive capacity; and the significance of FDI in the global economy. FDI is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased. FDI offers a source of external capital and increased revenue. FDI can be a tremendous source of external capital for the developing countries, which can lead to economic development. Through FDI, capital goes to whatever businesses have the economic growth anywhere in the world. FDI helps in increasing the output through the utilization of advanced technology and management techniques. FDI benefits investors, businesses, and the global economy. FDI contributes to foreign exchange earnings, employment creation, and the increases in incomes in the global economy.


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