The Research On The Measure Of Human Capital And It's Effect On FDI In Shandong Province

With the acceleration of the process of economic globalization, international competition is becoming increasingly evident. In today's competitive world, Competition is really for a high level of human capital and IT skills instead of economic resources or market share apparently. In international academic community, the role of the host country's stock of human capital has drawn much attention in recent years. Domestic and international research widely reveals that human capital not only affect economic growth, but also has closely relation with external economic exchanges such as foreign direct investment and technology transfer. Human capital and FDI are the key drivers of the economic growth in the developed countries; they are complementary and mutually reinforcing.As the engine of the global economy, FDI plays an increasingly important role in economic restructuring.As an eastern coastal province of China, the FDI that Shandong attracted in recent years has been at the forefront in China by virtue of its geographic conditions and economic environment. However, from the present point of view, the foreign capital of Shandong Peninsula imbalance in geographical and industrial distribution.What causes this phenomenon? In 1990 Lucas pointed out that human capital differences may explain this economic phenomenon. He believed that areas with high levels of human capital can attract a large number of high-tech FDI inflows, on the contrary the country with a lower level of human capital can only attract a small amount of low-tech FDI inflows, human capital is a major factor in the decision of FDI inflows, so understand how human capital effect on FDI inflows is a prerequisite to take policy measuresUsing a cross-section and panel date for the period 2000-2009 of Shandong province,this paper conducted a comprehensive empirical analysis on the impact of human capital on FDI. With the framework of a given model, we obtained the following conclusions:First, the human capital levels have significant differences between the eastern and western regions of Shandong province. Overall, levels of human capital in eastern cities are much higher than western cities. Second, human capital does affect the FDI inflows. Human capital significantly effect on FDI inflows in Shandong Province, both overall sample and regional sample support this conclusion. Third, different economic factors play different roles in FDI inflows different regions and industries. Finally, based on empirical research, this article gives some suggestion from the perspective of human capital, for example, increasing investment in human capital and increasing the level of human capital stock; improving the human capital market system and establishing regional human capital-sharing mechanisms; building the FDI policy frameworks human with the core of human capital.