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Foreign Direct Investment and Employment

In: Lewisian Turning Point in the Chinese Economy

Author

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  • Jin Du
  • Hiromi Ishizuka

Abstract

The ability to generate enough modern sector employment is crucial to achieve economic success in developing countries. This chapter examines the effect of foreign direct investment (FDI) on job creation in China’s manufacturing sector. Since the beginning of the reform and open-door policy at the end of 1970s, China has attracted foreign investment through various preferential policy measures, and to a great extent the government’s efforts have been rewarded. Foreign invested enterprises (FIEs, including those run by overseas Chinese in Hong Kong, Macao and Taiwan) have contributed significantly to the development of China’s export-processing capacity and the manufacturing industry as a whole, and helped the country to grow into the world’s top manufacturer and exporter, eventually becoming the world’s second-largest economy after 2010.

Suggested Citation

  • Jin Du & Hiromi Ishizuka, 2014. "Foreign Direct Investment and Employment," Palgrave Macmillan Books, in: Ryoshin Minami & Fumio Makino & Kwan S. Kim (ed.), Lewisian Turning Point in the Chinese Economy, chapter 8, pages 136-154, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-39726-3_8
    DOI: 10.1057/9781137397263_8
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    Cited by:

    1. Kudakwashe, Chinyanganya & Regret, Sunge, 2021. "Growth Effects of Foreign Direct Investments in Zimbabwe: Do Sources Matter?," African Journal of Economic Review, African Journal of Economic Review, vol. 9(4), September.

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