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

Abstract

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