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FDI 、 Cluster and Labor Allocation

FDI 、 Cluster and Labor Allocation. Zheng Feihu, Beijing Normal University. OLI Paradigm The location decision is a complex one. １. By the 1980s,external demand and supply forces change the MNC management practices. ２.

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FDI 、 Cluster and Labor Allocation

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  1. FDI、Cluster and Labor Allocation Zheng Feihu, Beijing Normal University

  2. OLI Paradigm The location decision is a complex one １ By the 1980s,external demand and supply forces change the MNC management practices ２ The particular choice of location within a country or free-trade area is now the central problem ３ 一、Background: Location of FDI Company Logo

  3. Good infrastructure Mutual Learning Self- reinforcing mechanism 一、Background: Industry Cluster Company Logo

  4. 1 2 3 Marshall’s (1920) tripartite explanation—— Inform. spillovers, Skilled Labor pool, Local inputs Porter’s(1990) industry cluster with the emphasis on the role played by local information We want to know—— What’s the effects on the skilled labor pool? Our question is Company Logo

  5. 二、Analytical framework: labor movement: personal revenue Vs cost firm cluster: organization revenue Vs cost Industry cluster: market structure Company Logo

  6. (一)labor movement Why the problem of “Rural-Urban Migrationshortage” in south-china? Why the problem of “human capital depreciation”? personal revenue Vs cost White-collar’s decision: Revenue>cost (Sunk cost and Living cost) Blue-collar’s decision: Urban Wage>Rural wage Company Logo

  7. (二) firm cluster Labor character.— Unstable Non-identifiable Labor character.—Stable relation identifiable organization revenue Vs cost entrepreneur’s decision based on knowledge intensive competition entrepreneur’s decision based on Labor intensive competition entrepreneur’s decision based on capital intensive competition Company Logo

  8. (三)industry cluster “Rural-Urban Migrationfluctuation? Zhu River triangle region of south china Professional workers allocation? Chang river triangle region of china market structure Strategic innovation complex Pure agglomeration Industry complex Company Logo

  9. 1 2 3 General labor : Atomistic allocated(1) Specific labor : Bounded allocated(2) Specific labor: Networked allocated(3) Labor-intensive firm clusters(1) Capital-intensive Firm clusters(2) Knowledge-intensive firm clusters(3) Pure agglomeration(1) Industry complex(2) Strategic Innovation complex(3) Inter-relations Company Logo

  10. Data intensive analysis of labor movement’s decision and information. 1 More indices of the nature and scope of the linkages between worker and entrepreneur’s game 2 Deepening understanding of the linkages between the firm cluster and industry cluster, esp.based on the transaction-cost analysis 3 三、future research: Company Logo

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