TITLE:
The Impact of Foreign Direct Investment on the Labor Income Share of Listed Companies
AUTHORS:
Fei Luo
KEYWORDS:
Foreign Direct Investment (FDI), Labor Income Share PSM
JOURNAL NAME:
Modern Economy,
Vol.11 No.2,
February
25,
2020
ABSTRACT: Based on the data of China’s listed companies in
Shanghai Stock Exchange and Shenzhen Stock Exchange from 2003 to 2017, this
paper tries to figure out effect of FDI on China’s labor income share from a
micro perspective. Now the reform and opening up and market-oriented reform in
China continue to evolve, but the labor income share of foreign enterprises is
not significantly bigger than that of domestic enterprises, which indicates
that the promoting effect of foreign direct investment on labor income share of
employees of the listed companies in China is declining or disappearing, but
high-level control of foreign investors will raise the labor income share.