FDI, Employment, and Economic Growth of Beijing City: Mechanism and Empirical Test

Abstract

This study was set out to investigate the linkages \nbetween employment, FDI and economic growth of Beijing city, and the mechanism \nof FDI’s impact on employment and the city’s economic growth. Channels of FDI’s \nspillover mechanism on employment and economic growth are identified. And based on sixteen district-level data of Beijing city from 2006 to 2017, we use \npanel data model to test the linkages between FDI, employment and city’s \neconomic growth. Findings show that for the six inner-city districts with well-developed \neconomy structure and city infrastructure, both FDI and Employment have a \npositive influence on the economic growth; while for the ten outer-city \ndistricts, economic growth seems to be fueled by employment and fixed capital \ninvestment.