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《China Population,Resources and Environment》 2013-01
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Employment Creation or Employment Substitution: Regional Difference and Dynamic Effect of OFDI on the Employment in China

ZHANG Jian-gang1 KANG Hong1 KANG Yan-mei2(1.College of Economics and Management,Shandong University of Science and Technology,Qingdao Shandong 266590,China; 2.Department of Information Science and Technology,University of International Relations,Beijing 100091,China)  
Since the beginning of the 21st century,China's rapidly growing OFDI has become an increasingly important factor to affect the economic development and has paved a new way to absorb the domestic labor force and to improve the quality of labor force.The home country employment effects of OFDI are mainly realized by the creation effect and the substitution effect in different periods and regions.This paper explores the home country employment effect and the regional difference of China's OFDI by using the province-level panel data from 2003 to 2010.Results show that the employment creation effect of OFDI surpasses the employment substitution effect from the whole countrywide level.It is also found that,as a result of regional non-equilibrium of China's OFDI development,the employment effect has significant regional difference.The employment creation effect is stronger than the substitution effect in the east region while the two effects have approximately similar but uncertain results in the central region.However,the west region's OFDI mainly shows substitution effect on employment at present due to its later development.More attention should be therefore paid to the classification and refinement in the regional development of foreign direct investment promotion policies.Accordingly,the government should guide the balanced development of OFDI in order to improve the regional employment structure.
【Fund】: 山东社科规划项目(编号:09CJGZ59)
【CateGory Index】: F832.6;F249.21;F224
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【Citations】
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