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Labour Quality and Inward FDI: A Firm-level Empirical Study in China

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  • Faqin Lin

    ()
    (School of Economics, University of Adelaide)

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    Abstract

    This paper uses a large sample of Chinese cross-section firm-level data with comprehensive information about labour quality to investigate the relationship between labour quality and FDI distribution in China. Using parametric, IV-GMM and non-parametric techniques, the author finds that labour quality measured by education level plays an important role on deciding the distribution of FDI but labour quality measured by working certificates lose their significance. The author also finds that labour quality has a more significant impact on other foreign investments than HMT invested firms and the impacts of labour quality on FDI is strongly uneven across industries and provinces.

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    File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2011-12.pdf
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    Bibliographic Info

    Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2011-12.

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    Length: 28 pages
    Date of creation: Mar 2011
    Date of revision:
    Handle: RePEc:adl:wpaper:2011-12

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    Web page: http://www.economics.adelaide.edu.au/
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    Keywords: education; foreign direct investment; labour quality;

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    1. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Estimating the effects of free trade agreements on international trade flows using matching econometrics," Journal of International Economics, Elsevier, Elsevier, vol. 77(1), pages 63-76, February.
    2. Carsten A. Holz, 2004. "China's Statistical System in Transition: Challenges, Data Problems, and Institutional Innovations," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 381-409, 09.
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