Author(s)

Ying Zhou

Corresponding Author

Ying Zhou

Abstract

With the implementation of China's “the Belt and Road” Initiative, foreign direct investment, as an important mode of international economic cooperation, has had a significant impact on the employment growth of Chinese provinces. This paper selects the provinces along China's “the Belt and Road” as the research objects, and conducts an empirical study through the panel data of 17 provinces from 2005 to 2022 to explore the influence mechanism of foreign direct investment on labor income. The research results show that: First, foreign direct investment has a significant positive impact on the growth of labor income, and the degree of impact is related to factors such as the regional economic development level and the regional wage level. Second, the level of foreign direct investment has heterogeneity in the labor income enhancement effect of the provinces along China's “the Belt and Road”, and its promoting effect on the labor income in the less - developed regions of China is more significant. Therefore, the development of foreign direct investment should be continuously promoted to steadily achieve the goal of high - level opening - up. At the same time, multinational enterprises need to utilize the development platform of “the Belt and Road” to improve their innovation capabilities and enhance their international competitiveness, so as to further promote and improve the level of labor income in China.

Keywords

Foreign direct investment; labour income; Belt and Road