Our Human Capital And Foreign Direct Investment In Research

The foreign direct investment is a composite resource which not only brings out thedirect effect of capital accumulation but also the indirect effect of technology spillover.After entering the new century, China has been one of important countries inaccepting FDI and the quantity increases gradually. But the research finds that theeffect of capital accumulation is weakening, and comparatively, the effect oftechnology spillover has been the new increasing point in economy. There have beenmany researches about the technology spillover of FDI. It is found that the developingcountries need have enough human capital to use the effect of the technology spillover.The text makes the conclusion through the regression analyzing to the country'sdatum from 2000 to 2005 and the research of every area, that is, on the whole theeffect of capital accumulation has been out of use, and the effect of technologyspillover is driving the economy. The combination between human capital and FDI isgood at the increase in economy, and the high level human capital take the decidingeffect; for every area, the combination between human capital and FDI also makeeffect, but per area need different human capital and FDI. At last, we make the policysuggestion that China should adjust the stratagem and policy in using FDI consideringour practice, advance the human capital through increasing the education expenditure,improve the environment of home market, and absorb FDI which is better and suitingthe development of economy.