?Effects of FDI on Employment
[WT5]Sha Wenbing?1Tao aiping?2
Abstract: We did an empirical research on FDI and employment in China according to the cointegration theory, using the annual data from 1979 to 2005. We found that there was long-term equilibrium relationship between FDI and Chinese employment: in the long term, employment in China goes up by 0.13% as FDI increases 1%.We also used the error correction model to investigate the shot-term fluctuation and its adjusting mechanism between FDI and employment in China.
Key words: FDI; employment effects; cointegration; error correction model