The Study On Human Capital And FDI Technology Spillover Effects

As economic activity acceleration of the globalization process, international capital flows are accelerating growth. Foreign direct investment substantial growth in the world socio-economic development has a great effect on the economy. Scholars from around the world have paid a great attention to it.National economic scholars have done a great deal of study on FDI technology spillover effect. The objective existence in theory of the FDI technology spillover effects has been unanimously affirmed by the world economy scholars, but the empirical research findings of the countries differ widely. There are two generally positive conclusions: First, FDI flows to developed countries through the universal existence of the test technology spillover effects; second, the FDI flowing to developing countries is hardly to obtain consistency of the conclusions on the existence of the technology spillover effects. Theoretical and empirical results exists the "Law of the anti" phenomenon.FDI technology spillover effect is different for two reasons: On the one hand, technology spillover is not automatically generated, a technology spillover need FDI host country with certain conditions. The purpose of foreign investors is profit, not in order to promote the technological progress of the host country, therefore, only when the host country have corresponding conditions FDI will produce technology spillover effects. On the other hand, the role of FDI in economic growth of the host country is in the final analysis different countries because of the differences in absorption capacity of the host country, the extent to which the host country can digest, the absorption of foreign capital technology spillover played a decisive role in FDI technology spillover effects.Human capital is the core of absorptive capacity of the host country, so a lot of empirical research refers human capital to the absorption capacity, FDI inflows to bring the potential of the technology spillover. At the same time, the local human capital level is decisive to absorb the number of FDI and local enterprises can absorb the technology spillover from the multinational corporations. Human capital is an important channel for technology spillovers, the several ways of the technology spillovers: the effect of competition demonstration, the effect of the before and after links,the effect of the movement of persons, they are achieved through the absorption of human capital. Therefore we can say that human capital is the core elements of the host country absorption capacity.Foreign direct investment as a major ways of the foreign investment into China, has played a pivotal role in the process of China's economic development. To fully understand the conditions of foreign direct investment technology spillover, and to improve the technology spillover effect of the foreign direct investment will add more effective force for China economic growth. However, the important role of the human capital in the process of the technology spillover has not caused enough concern and attention. The research on the human capital in determining of the absorption capacity of the technology spillovers is still in the initial stage, the existing research is generally as incidental research, there are still a lot of gaps and exploration space in the theoretical and empirical. Therefore, using FDI and economic growth theories on the basis of human capital in FDI technology spillover illustrates the role of human capital of the host country and FDI impact on economic growth and other issues, these will have long-term practical value for China fully utilizing FDI active role in promoting economic developmentIn the light of the important role of human capital in the course of FDI technology spillovers, the article do theoretical and empirical analysis on the technology spillover effect of FDI from the perspective of the human capital. The first is the theoretical analysis to illustrate the decisive factors of the human capital as FDI technology spillover effect. On the basis of theoretical analysis, the article do the empirical study on the difference of human capital (from the perspectives of the stock of human capital, the structure of human capital, and the investment of human capital) and FDI technology spillover effect in the eastern, central and western regions. Study found that in three regions the human capital is best in the east, followed by the central region, the West is worst. Then on the eastern, central and western regions of technology spillover effect size, empirical results show that the spillover effects of the three regional technical differences: the eastern region technology spillover effects are significant and the highest, then the value of the west is higher; Western technology spillover effects is negative. Human capital is the decisive factor in FDI spillover effects, the final conclusions are that eastern, central and western regions technology spillover effects are different, mainly due to differences in human capital.In this paper, along such a major theme: the effect of human capital on FDI technology spillover - Comparing the eastern, central and western regions of human capital situation - Empirical analysis of China's eastern, central and western regions FDI technology spillover effect and comparison of the empirical results, pointing out the difference of human capital is the main reason of the difference of the technology spillover effects. The dissertation has three innovations:Firstly, the existing FDI technology spillover literature only do empirical research, there is no detailed discussion of technical spillover theoretical framework. This article fromBorensztein,Gregorio&Lee (1998) and KyoohongCho (2005) model expounded that human capital is foreign direct investment technology spillover effect decisive factor in the theory, pointing out that only foreign direct investment combined with the human capital of the host country will have a technology spillover effect, the human capital in the process of the foreign direct investment technology spillover have played a central role, it is a decisive factor of foreign direct investment technology spillover effect.Secondly, the empirical analysis of China's eastern, central and western compare the situation of human capital, mainly from the three perspectives of the stock of human capital, the structure of human capital, and the investment of human capital comparison. Set out in the eastern of the stock of human capital, the structure of human capital, and the investment of human capital in these three areas are the best, followed by the central region, the western region is worst.Finally, in view of the adjacent space has a critical impact on technology spillovers of the FDI (Jaffe, 1986,1989), geographically adjacent do good to the flow of technology, the possibility of the foreign enterprises technical spillover with the distance reducing increase (Kui-yin Cheung, Ping Lin, 2004). In order to reflect the objective of foreign direct investment technology spillovers, in the text on the basis of theoretical analysis, using inter-provincial data, the provinces and municipalities of China will be divided into eastern, central and western regions, in the use of panel data, do empirical analysis foreign direct investment technology spillover effect to China. On the basement of the theoretical model that the human capital is the decisive factor in FDI technology spillover effects, test the technology spillover effect size of the integration of the human capital and FDI, human capital and domestic investment. Then, compare on the technical spillover effect differences of the eastern, central and western regions.In addition, the paper uses of national-level data, further analysis of foreign direct investment technology spillover effects more obvious combine with which level of human capital. Found that foreign direct investment with a higher education degree generated more obvious spillover effects.Above, there were not examined by our predecessors. It will help change the ideas of China's use of foreign direct investment, positive and effective. It has an important reference significance on how to make foreign investment more effectively promote China's technological progress, promote economic growth.