The impact of foreign direct investment in China: Labour productivity

China 's accession to the World Trade Organisation (WTO ) in 2001 , increased entry and competition in domestic markets and improved access to foreign markets has boosted trade , investment , and competition , factors that are associated with productivity increases (Financial Express , 2007

4 .0 Conclusion

An important element in the development of China 's industry since the 1980s is the rapid growth of the Township and Village Enterprises (TVE This helped create 107 million new jobs during the 1978-96 periods (Park , 2001 , resulting in a phenomenal increase of share in rural employment : up from

9 in 1978 . This figure leaped , and the employment level in TVE accounted for more than a quarter of in 1999 , which was equivalent to 18 of Chen ,

.4 , 2002

Ever since China broke away from its tradition to open its boundaries to foreign investment , many multinational companies , including Rolls Royce Volvo , Motorola , Alcatel , and Timken , to name a few have set up huge manufacturing and production conglomerates here . This has led to a labour revolution . Many unemployed youths have now the opportunity to work in international companies , and experience high salaries and comfort . The labour productivity of the Chinese has now come to the fore . Testimony of its surplus production and exports speak for itself China is now on the way to becoming a true economic superpower , thanks to their labour output

5 .0 References

1 .0 NBS , The National Economy Maintained a Steady and Fast Growth in 2006 , www .stats .gov .cn

2 .0 Melody Vargas , About : Retail Industry , Labor Productivity Growth Improves Worldwide , http /retailindustry .about .com

3 .0 Yu Chen , Foreign Direct Investment and Manufacturing Productivity in China , www .bm .ust .hk ced /Yu 20CHEN .pdf

4 .0 Financial Express , World Bank finds out what makes China tick www .financialexpress .com

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