Li Lei:How Does OFDI  Affect Home-country Employment

Date of publication:2016-8-17There have been0A reader to read the article

How Does Outward Foreign Direct Investment Affect Home-country Employment: Based on China’s Micro-level Enterprises Database

Abstract     In the context of rapidly growing Chinese enterprises’ OFDIthis paper theoretically and empirically analyzes the influence of OFDI to Chinese domestic employment. The theoretical models are built to analyze the influence mechanism by which OFDI impact domestic employment. The empirical results show that OFDI of Chinese enterprises has a significant and positive impact on domestic employment. Meanwhile, the more times enterprises invest, the more labors that the parent company will employ. The impact is robust to enterprise’ ownership types and the income levels of investment destination. Different investment motivations have different impact on employment. The effect produced by enterprises’ resource-seeking OFDI to employment of its parent company is affected by industry classification, and the effect produced by enterprises’  horizontal and vertical OFDI to its parent company’ s employment is affected by income levels, import and export of intermediate product and final product.


This paper is published in Economic Research Journal, No.8, 2016.