Abstract:Based on the panel data of 30 provinces in China from 1998 to 2013,this paper examines the impact of Foreign Direct Investment on labor income share through capital biased technological change.The empirical results show that FDI decreases China's labor income share through capital biased technological progress,with its effects descending in the order of East,West and Central regions.Furthermore,the quality of FDI has an inhibitory impact on the increase of labor income share through capital-biased technological progress,but its partial effect fails to reduce the share of labor income.This conclusion is of great significance for China to choose reasonable capital and reduce the income gap caused by FDI
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