Analysis of the Heterogeneous Impact of FDI on Employment Quality

Abstract

Expanding employment capacity, improving employment quality, and alleviating structural employment conflicts are the main drivers for promoting high-quality regional economic development. Based on this, this paper takes 30 Chinese provinces as research samples from 2009-2019 to study the impact of FDI on employment quality. The research results show that (1) FDI growth can significantly contribute to the improvement of employment quality. (2) The impact of FDI on employment quality is regionally heterogeneous, with a boosting effect on employment quality in the east and central regions, and the boosting effect is greater in the central than in the east, while it has a negative impact on employment quality in the west. (3) The level of economic development has a significant promoting effect on employment quality; on the contrary, the local fiscal revenue, labor competition level, and infrastructure construction level will have a negative effect on employment quality. Therefore, this paper suggests that more FDI can be introduced, and at the same time, FDI with different characteristics should be focused on different regions according to local conditions, so as to better promote the employment quality.