International Allocation Of Human Capital In Economic Globalization

Since 1950s, a series of such new economic phenomena as "Mystery of Modem Economic Growth" and "Mystery of Leontief,Wassily" have posed great challenge to the traditional theories, particularly such basic economic hypothesis as Capital Homogeny and Work Force Homogeny. Studies of these new economic phenomena laid the foundation of the nuclear role in modern economic growth of the special production factor, human capital. Faced with the trend of economic globalization, human capital, just like any other production factor, is seeking perfect allocation worldwide to maximize its effectiveness in order to adjust itself to the severe international competition. Based on the inevitable trend of international allocation of human capital and economic theories, this paper analyses various practical advantages and disadvantages in the process of international allocation of human capital and puts forward suggestions on how to remove the obstacles and promote the process of international allocation of human capital.This paper consists of four sections.Section 1 introduces the related theories of human capital. It first introduces the definition of human capital and the background of theories on human capital. It then illustrates the nuclear role of human capital in modern economic growth. By analyzing the factor function and efficiency function of human capital, it explains the principles of how human capital works and indicates that complementary proportion with certain substance factor is the basis and premise of realizing its function. It is further analyzed the features of human capital as production factor and the specific requirement of maximizing its effectiveness, thus laying the foundation of this paper. It is also made clear in this section that there is a trend of international allocation of human capital.Section 2 expounds the requirements of economic globalization on international allocation of human capital by firstly introducing the background of economic globalization. On repeating the objectivity of the trend of economic globalization, it focuses on two inner requirements of realizing economic globalization, which are the evenand sustainable development of global economy and the meeting this requirement by international allocation of human capital. It is also proposed that features of international allocation of human capital under the circumstance of economic globalization should be the aim and pattern of international allocation of human capital.Section 3 analyses the present situation and the developing conditions of international allocation of human capital by using positive methods and points out further the features of one-way floating of the international allocation of human capital and the causes in detail. It is believed that there are malpractices of present international allocation of human capital in the aspects of even development of global economy, enforcement of the policy of localization of human resources by multi-national companies and the continuity of human resource floating. It is further proposed that only by setting up patterns of international allocation of human capital which meet the requirements of economic globalization can such malpractices be got rid of. This section further illustrates and analyses various favorable and unfavorable conditions for the further development of international allocation of human capital.Section 4, based on the above three sections, puts forward three pieces of advice on how to promote international allocation of human capital. They are, 1: to break the old international economic system and create the good environment of international allocation of human capital; 2: to repair "the digital gap" and smoothen the international allocation of human capital; 3: to strengthen cooperation and administration in order to promote the setting up of the well-functioned system of international allocation of human capital.