The Impacts of Foreign Direct Investment on Labor Market in Taiwan

碩士 === 大葉大學 === 管理學院碩士在職專班 === 101 === Abstract Under the tendency to globalization, in order to expand the size of the market, many manufacturers lower the production cost, elevating competitiveness, and one by one transferring their factories to the countries where wages are lower, natural resour...

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Bibliographic Details
Main Authors: Yi, Chiung-Hua, 易瓊華
Other Authors: Chang, Chun-Po
Format: Others
Language:zh-TW
Published: 2012
Online Access:http://ndltd.ncl.edu.tw/handle/83854367603518287331
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Summary:碩士 === 大葉大學 === 管理學院碩士在職專班 === 101 === Abstract Under the tendency to globalization, in order to expand the size of the market, many manufacturers lower the production cost, elevating competitiveness, and one by one transferring their factories to the countries where wages are lower, natural resources are abundant, and market potential is greater. This thesis is to investigate what effect the domestic manufacturers’ overseas investment has on the domestic unemployment rate. The main point of this study is to find out whether the domestic rising unemployment rate is related to the domestic manufacturers’ eagerness for overseas investment. This study observes the tendency of our country’s overseas investment over the years and the evolution of the domestic labor supply and demand. Based on the labor demand theory and considering the factors which affect labor demand, this thesis uses Multiple Regression Analysis to conduct an evidence analysis of what effect overseas investment has on the labor market. The result is that the manufacturers’ total overseas investment noticeably has a positive effect on the investment in Chinese mainland and Vietnam, the number of foreign laborers, and global economic crisis. The study also shows that the more money and the more foreign workers are introduced into our country, the less the opportunity of getting a job is and that the higher the proportion of the investment is, the lower the domestic labor demand is. On the other hand, the manufacturers’ total overseas investment noticeably has a negative effect on REMP, RGDP, and investment in Singapore, the Philippines, Thailand and Korea. The economy index has negative relation with Asian financial crisis. In addition, the investment in Hong Kong, Japan, Malaysia and Indonesia has a positive effect on domestic labor demand, but its effect is not noticeable. Therefore, it is believed that the cause of the rising domestic unemployment rate over the years is that the domestic manufacturers are keen to invest in Chinese mainland and Vietnam. Besides, the transformation of the industrial structure, the weakening of the domestic economy and the number of foreign laborers are also part of what makes the unemployment rate rise. key words:Foreign Direct Investment, The Labor Market, The Unemployment Rate, Multiple Regression Analysis