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on China |
| By: | Karlsson, Sune (Örebro University); Lundin, Nannan (Research Institute of Industrial Economics (IFN)); Sjöholm, Fredrik (Research Institute of Industrial Economics (IFN)); He, Ping (National Bureau of Statistics of China) |
| Abstract: | This paper examines the effect of FDI on job creation in the Chinese manufacturing sector. As one of the world’s largest recipients of FDI, China has arguably benefited from foreign multinational enterprises in various respects. However, one of the main challenges for China, and other developing countries, is job-creation, and the effect of FDI on job creation is uncertain. The effect depends on the amount of jobs created within foreign firms as well as the effect of FDI on job creation in domestic firms. We analyze FDI and job creation in China using a large sample of manufacturing firms for the period 1998-2004. Our results show that FDI has positive effects on employment growth. The positive effect of job creation in foreign firms is associated with their firm characteristics and, in particular, their access to export markets. There also seems to be a positive indirect effect on job creation in domestically owned firms, presumably caused by spillovers. |
| Keywords: | China; Employment; Foreign Direct Investment; Job Creation |
| JEL: | F23 J21 J23 |
| Date: | 2007–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0723&r=cna |
| By: | Maswana, Jean-Claude |
| Abstract: | This essay has explored the validity of Marxist dependency theories in the context of the emerging China-Africa trade and economic relations. Whereas dependency theory assumes that economic domination runs across north-south geoeconomic patterns, this discussion has shown that the China-Africa economic links represent a distinct south-south dialectic occurring in an emerging new global economic configuration marked by a technology gap. Therefore, the discussion fails to support the idea that China’s involvement in Africa is of a conventional center-periphery type; which suggests the existence of nonexploitative, tough dependent, trade features. This dependence implies that external factors and decisions (included those related to China) also determine the real level of development in the Africa. Also worth mentioning is that for the first time Africa is drastically shifting its trade pattern away from its colonial framework: it too is becoming linked to a rapidly changing economy. Such a shift means that China’s own constant economic and social structural changes make it easy for Africa to adjust to the emerging new global economic order. At the same time, the China-Africa relationship is marked by unavoidable dialectic tensions like labor and competition issues. Even though synergies can be created by considering China’s legitimate interests in Africa and Africa’s own legitimate rights, no matter how well-intentioned China is, Africa must still generate its own technological capacities and rid itself of its legendary rampant corruption. Thus, both sides must admit that there will be no long-run benefit unless each contributes to the emergence of a new economic configuration that is deeply rooted not in mutual but in common or joint interests. |
| Keywords: | China; Africa; Dependency theories; Economic Development; Globalization |
| JEL: | O19 F59 |
| Date: | 2007–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5520&r=cna |