The Impact of Foreign Direct Investment on the Labor Income Share of Listed Companies

Luo, Fei

doi:10.4236/me.2020.112040

Cited by 3 publications

(5 citation statements)

References 11 publications

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“…Further, this paper tests how local government debt affects labor income shares. For a more intuitive analysis, we refer to Luo (2020) to formulate the labor income share as [ 55 ]: …”

Section: Further Analysismentioning

confidence: 99%

Local government debt and labor income share: Evidence from China

Wu,

Tian,

2023

PLoS ONE

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This study employs a CES production function to construct a theoretical model of labor income share and uses a two-way fixed effects model to test the causal effects of local government debt (LGD) on the labor income share of enterprises. Local government debt governance policies are utilized as exogenous shocks, and a DID (Difference-in-Differences) model is applied for endogeneity testing. The results have passed a series of robustness checks. The findings suggest that LGD decreases the share of firms’ labor income. The mechanism analysis suggests that LGD lowers the labor remuneration of residents, the employment of labor in enterprises, and the size of bank loans mainly; while raising the cost of using funds in enterprises. Moreover, this negative effect is more apparent in non-state-owned enterprises, small and medium-sized enterprises, and enterprises with high financing constraints. This study presents new evidence on how the labor income share of enterprises is affected from the perspective by local governments in China. It has important implications for further deepening local government debt governance and achieving common prosperity.

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“…Further, this paper tests how local government debt affects labor income shares. For a more intuitive analysis, we refer to Luo (2020) to formulate the labor income share as [ 55 ]: …”

Section: Further Analysismentioning

confidence: 99%

Local government debt and labor income share: Evidence from China

Wu,

Tian,

2023

PLoS ONE

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“…More investment in an economy increases competition and improves domestic markets. Increased FDI may offer a country a larger voice in global summits (Guimón, 2011;Lipsey, 2002;Hanson, 2001;StudyCorgi, 2022).…”

Section: Theoretical Benefits and Cons Of Fdimentioning

confidence: 99%

“…Finally, excessive FDI may threaten a nation's sovereignty. Foreign investors may make crucial economic decisions (Lipsey, 2002;StudyCorgi, 2022). FDI is driven by both internal and external benefits, despite the lack of a theoretical framework.…”

Section: Theoretical Benefits and Cons Of Fdimentioning

confidence: 99%

“…From a macroeconomic perspective, it is thought that FDI significantly contributes to the creation of jobs, expansion of total production, technology transfer, and access to the global market. Some scholars believe that FDI can enable the leakage of sophisticated technology to enterprises in the host economies, which supports the importance of FDI in technology transfer (Lipsey, 2002;Razin and Sadka, 2007;StudyCorgi, 2022).…”

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confidence: 93%

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Macroeconomic Drivers of Foreign Direct Investment Inflows to Nigeria: Analysis of Shocks and Long-Run Causation

Chekwa,

Ezirim,

Adeyinka

et al. 2023

JABE

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This study seeks to underscore the extent to which macroeconomic vectors cause foreign direct investment inflows using cointegration, vector error correction, impulse response functions, and variance decomposition techniques against annual Nigerian data from 1986 through 2020. It also attempts to unravel how FDI inflows respond to macroeconomic shocks. The results indicate that, in the long-run, interest rate, inflation, exchange rate, level of economic activity and growth, and degree of trade openness of the economy significantly cause FDI inflows to Nigeria. Whereas the direction of causation is positive for inflation, exchange rate and trade openness of the economy, it was negative for level of economic activity and interest rate. FDI inflows responded to shocks in the above independent variables in different directions, some positively for a designated time, while some negatively at other periods. Generally, shocks in the independent variables jointly affected the shocks in FDI from the second through the tenth periods of innovations. Policy implications favor government action to lower interest rate, maintain mild inflation and moderate devaluation of the Naira against the currencies of trading partners, among others.

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“…Data mining, recommendation systems, etc. are all based on massive user data and modeling user data and then used to predict new users or give relevant recommendations to achieve the purpose of data commercialization; that is, use known data to obtain related business profits [7,8]. Suppose that n sensors are deployed in the grid, and the surrounding environment is periodically monitored for data collection.…”

Section: Corporate Financing Constraints and Labormentioning

confidence: 99%

Impact of Enterprise Financing Constraints on Labor Income Share Based on Internet of Things Data Analysis Technology

Zhang

Wei

Zhang

2021

Wireless Communications and Mobile Computing

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Although the Chinese economy has developed rapidly since the reform and opening up, the income distribution gap is widening year by year. The final social income distribution pattern is highly dependent on the primary distribution pattern. Therefore, the changing trend and influencing factors of labor income share have become the focus of academic research and the focus of government attention. Based on this, this article proposes enterprise financing based on Internet of Things data analysis technology. Studies on the impact of restraints on labor income shares will help further research on the impact of corporate financial restraints on future labor income shares. Based on the financial data reports published in the CCER database and the company’s IPO prospectus and annual report, this paper discusses whether the company’s key business products belong to the Internet of Things’ key technology application categories. Take 226 IoT companies as the research objects of this article, and conduct a secondary screening. The final survey sample is used to investigate the impact of corporate funding constraints on labor income share. Tests have proved that among the 179 resource-based enterprises undergoing transformation, 109 enterprises have undergone intraindustry transformation, accounting for 48.23% of the overall sample and 60.89% of the sample of transformed enterprises. Downstream expansion makes the business industry expand. This shows that funding constraints have a negative impact on labor income share. This is primarily the result of the impact of the long-term debt-to-asset ratio on labor income share.

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The Impact of Foreign Direct Investment on the Labor Income Share of Listed Companies

Cited by 3 publications

References 11 publications

Local government debt and labor income share: Evidence from China

Local government debt and labor income share: Evidence from China

Macroeconomic Drivers of Foreign Direct Investment Inflows to Nigeria: Analysis of Shocks and Long-Run Causation

Impact of Enterprise Financing Constraints on Labor Income Share Based on Internet of Things Data Analysis Technology

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