Abstract

Service sector employment in host countries of FDI inflows affect the quantity and quality of employment, including employment, two aspects: the former can be divided into direct and indirect effects of two levels, from the impact point of view, both "job creation effect," there are "employment substitution effect "; which is reflected in the host country, the average labor productivity and wage levels, investment in human capital, employment structure and other aspects. Empirical results show that: FDI inflows on China's employment services sector role in boosting the number of small, but to improve the quality of employment in China has more significant effect. We believe that at this stage of the introduction of services FDI, should be to create indirect employment effects and improve the quality of employment, the main objective of optimizing the structure of employment; FDI in the service industry choice, we should vigorously introduce capital and technology-intensive service sector FDI . The FDI inflows into China's service field may affect both quantity and quality of the country's employment. The former, ie, the effect on the quantity of the employment can be direct or indirect, creative or substitutive. The later, ie, services FDI inflows affected the quality of the employment shows itself on the productivity, skills transfer, and the employment structure, etc. Our empirical study proves that the service FDI inflow into China has little influence on the scope of employment, whereas it greatly advances the quality of the country's employment. Hence the focus should be put on improving the productivity, skills and the employment structure through services FDI inflows. At meanwhile, China shall endeavor to introduce more foreign capital into the dense capital and dense technological service industries