Analysis On Human Capital Spillovers During China Absorbing International Industrial Transfer

Industrial transfer is not only the economic self-development needs of developed regions, but also the powerful external forces of less development regions to achieve leapfrog development. Since reform and opening-up, China has absorbed a huge number of international industrial transfers by the absorption of foreign direct investment. The initial purpose of foreign funds absorption was to solve double funding gap problem. Then it became to absorb technology spillovers of international industrial transfer. But the technology spillovers of industrial transfer is a very complex process, it mainly achieves through competition, linkage and human capital mobility. Human capital mobility is the most important and easily controlled affecting factor of all. This means when the employee who has working experience or training experience in foreign (or multinational) enterprises switches to host-funded enterprises or establishes a new enterprise in host country, he will not help to use his technology, skills or management expertise obtained in former foreign (or multinational) enterprises. As a result, domestic enterprises'technology level of production is improved, thereby the technology level of host country is affected, and host country's economic development is promoted, thus the human capital mobility spillovers are generated. Therefore, I select the human capital mobility during the process of absorbing international industrial transfer of China as a research point in this paper, then theoretically analyze the existence of human capital mobility spillovers. Then, based on others'human capital mobility spillovers research model and the actual situation of our country I establish a simple empirical model to discuss human capital mobility spillovers and its influence factors.It can be seen that the technology level of foreign-invested enterprises is generally higher than domestic-funded enterprises from the comparative analysis on the technology gap of domestic and foreign enterprise. This also powerfully proves the theory hypothesis of human capital mobility spillovers: foreign-invested enterprises generally have higher technology level than domestic-funded enterprises; so those human capitals who switch to China's business have higher technology level than local human capital; their inflows can promote China's enterprises to absorb advanced production technology, management knowledge and skills; and then it improves the productivity levels and economic growth and development of China; therefore, human capital mobility spillovers is generated. Finally, the empirical test results indicate that the inflow of foreign human capital during international industrial transfer absorbing of our country produce a positive spillover effect, which is similar to the conclusions of other scholars. However, the spillover effect of human capital mobility is affected by the level of education and industry salary, and human capital move into enterprises of different characteristic (foreign-invested enterprises, state-owned enterprises, private enterprises); its spillover effects are significantly different.