The Employment Effect Of Outward FDI On Home Country

With the implementation of "Going abroad" strategy, an increasing number of enterprises have carried out the activities of outward investment, and the effect of outward FDI on the home country labor market has aroused widespread concerns. This article will analyze this issue from the perspective of different industries. Specifically, this article will set up cross sections by making use of Chinese three industries, and set up dynamic panel data model by using data sample of each cross section from 2004-2012 to analyze the influence of outward FDI on employment of different industries. According to the results, significant differences exist among the impacts of outward FDI on domestic employment of industries. Outward FDI has a negative effect on the job creation in Primary industry and Secondary industry, although it is not significant, while it has a significant effect on the Tertiary industry in terms of job creation.