Foreign Direct Investment and Employment

Jin Du and Hiromi Ishizuka

Chapter 8 in Lewisian Turning Point in the Chinese Economy, 2014, pp 136-154 from Palgrave Macmillan

Abstract: Abstract The ability to generate enough modern sector employment is crucial to achieve economic success in developing countries. This chapter examines the effect of foreign direct investment (FDI) on job creation in China’s manufacturing sector. Since the beginning of the reform and open-door policy at the end of 1970s, China has attracted foreign investment through various preferential policy measures, and to a great extent the government’s efforts have been rewarded. Foreign invested enterprises (FIEs, including those run by overseas Chinese in Hong Kong, Macao and Taiwan) have contributed significantly to the development of China’s export-processing capacity and the manufacturing industry as a whole, and helped the country to grow into the world’s top manufacturer and exporter, eventually becoming the world’s second-largest economy after 2010.

Keywords: Foreign Direct Investment; Total Factor Productivity; Employment Share; Domestic Enterprise; Ownership Group (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-39726-3_8

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DOI: 10.1057/9781137397263_8

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