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Foreign Capital Introduction,Industrial Transformation and Poor Labor Force Employment in Special Economic Zone—Taking Shenzhen as an Example
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In the past 30 years,with its geographical advantages (adjacent to Hong Kong and Macao) and policy effect of special zone,Shenzhen,a border fishing village in the beginning,has become the fastest growing city in China. And meantime,it is also one of the most centralized and fastest developing cities of absorbing foreign direct investment. By the year of 2009,Shenzhen had used foreign capital 62.77 billion dollars in total,including foreign borrowing$ 6.675 billion,foreign direct investment (FDI) 45.63 billion and other investment from foreign businessmen 10.47 billion. Foreign capital influences economy in Shenzhen by proving various kinds of transmission mechanism,such as capital,technology spillover,industry evolution,institutional change and so on. It makes important contributions to Shenzhen economy’s take-off and development.

Experience shows that FDI greatly promotes Shenzhen economy and makes great contributions to its economic growth. But economic development does not necessarily bring improvement to income distribution and reduce poor population. Compared to domestic investment,FDI,as a kind of capital investment,provides an obviously different influence on the mechanism of overall economic development and income distribution,thus producing an distinct effect on poverty reduction. This paper,taking Shenzhen as an example,investigates the influence FDI produces on the income distribution in Shenzhen,especially on the employment of the poor and the poverty reduction effect in local area and even in the whole nation.

The paper mainly includes four parts:the first part is the discussion of the influence that FDI’s introduction works on local income distribution and poverty reduction effect;the second part is the investigation of the stage characteristics of labor force in Shenzhen and that of the FDI industry;the third part is an empirical analysis about the relationship between FDI and the employment of poor workers;the last part is the conclusion and policy intension.

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