FDI deregulations and employment

Yongbing Chen; Jiawen Hu; Yurui Du; Zhan Chaoqun

doi:10.1016/j.ceqi.2024.12.002

FDI deregulations and employment

Yongbing Chen
, Jiawen Hu
, Yurui Du
, Zhan Chaoqun^*

^*Corresponding author for this work

Department of Accountancy, Economics and Finance

Research output: Contribution to journal › Journal article › peer-review

1 Citation (Scopus)

Abstract

We empirically investigate whether employment is affected by foreign direct investment (FDI). Empirical results show that the FDI deregulations promote employment by increasing the job creation rate. In addition to the employment expansion of incumbent firms, the FDI deregulations facilitate the entry of new firms, which also contributes to employment. Furthermore, FDI in upstream industries can promote employment in this industry, and FDI from other regions can promote local employment. Finally, a simple estimate shows that about USD 56,900 is required for each job created.

Original language	English
Pages (from-to)	281-292
Number of pages	12
Journal	China Economic Quarterly International
Volume	4
Issue number	4
DOIs	https://doi.org/10.1016/j.ceqi.2024.12.002
Publication status	Published - Dec 2024

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure
SDG 10 Reduced Inequalities

User-Defined Keywords

Difference-in-difference estimation
FDI deregulations
Net employment growth

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10.1016/j.ceqi.2024.12.002

Cite this

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title = "FDI deregulations and employment",

abstract = "We empirically investigate whether employment is affected by foreign direct investment (FDI). Empirical results show that the FDI deregulations promote employment by increasing the job creation rate. In addition to the employment expansion of incumbent firms, the FDI deregulations facilitate the entry of new firms, which also contributes to employment. Furthermore, FDI in upstream industries can promote employment in this industry, and FDI from other regions can promote local employment. Finally, a simple estimate shows that about USD 56,900 is required for each job created.",

keywords = "Difference-in-difference estimation, FDI deregulations, Net employment growth",

author = "Yongbing Chen and Jiawen Hu and Yurui Du and Zhan Chaoqun",

note = "The authors declare the following financial interests (e.g., any funding for the research project)/personal relationships (e.g., the author is an employee of a profitable company) which may be considered as potential competing interests: National Social Science Foundation (19ZDA067). The authors would like to express their gratitude to the National Social Science Fund of China (19ZDA067) and the Startup Grant from Hong Kong Baptist University (RC-STARTUP/23-24/10). dPublisher Copyright: {\textcopyright} 2024 The Authors",

year = "2024",

month = dec,

doi = "10.1016/j.ceqi.2024.12.002",

language = "English",

volume = "4",

pages = "281--292",

journal = "China Economic Quarterly International",

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T1 - FDI deregulations and employment

AU - Chen, Yongbing

AU - Hu, Jiawen

AU - Du, Yurui

AU - Chaoqun, Zhan

N1 - The authors declare the following financial interests (e.g., any funding for the research project)/personal relationships (e.g., the author is an employee of a profitable company) which may be considered as potential competing interests: National Social Science Foundation (19ZDA067). The authors would like to express their gratitude to the National Social Science Fund of China (19ZDA067) and the Startup Grant from Hong Kong Baptist University (RC-STARTUP/23-24/10). dPublisher Copyright: © 2024 The Authors

PY - 2024/12

Y1 - 2024/12

N2 - We empirically investigate whether employment is affected by foreign direct investment (FDI). Empirical results show that the FDI deregulations promote employment by increasing the job creation rate. In addition to the employment expansion of incumbent firms, the FDI deregulations facilitate the entry of new firms, which also contributes to employment. Furthermore, FDI in upstream industries can promote employment in this industry, and FDI from other regions can promote local employment. Finally, a simple estimate shows that about USD 56,900 is required for each job created.

AB - We empirically investigate whether employment is affected by foreign direct investment (FDI). Empirical results show that the FDI deregulations promote employment by increasing the job creation rate. In addition to the employment expansion of incumbent firms, the FDI deregulations facilitate the entry of new firms, which also contributes to employment. Furthermore, FDI in upstream industries can promote employment in this industry, and FDI from other regions can promote local employment. Finally, a simple estimate shows that about USD 56,900 is required for each job created.

KW - Difference-in-difference estimation

KW - FDI deregulations

KW - Net employment growth

UR - https://www.scopus.com/pages/publications/86000436692

U2 - 10.1016/j.ceqi.2024.12.002

DO - 10.1016/j.ceqi.2024.12.002

M3 - Journal article

AN - SCOPUS:86000436692

SN - 2666-9331

VL - 4

SP - 281

EP - 292

JO - China Economic Quarterly International

JF - China Economic Quarterly International

IS - 4

ER -

FDI deregulations and employment

Abstract

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