China’s FDI Technology Spillover Effects Based On The Human Capital

FDI Technology Spillover has been an important way to promote the technological progress of the host country. A large number of empirical studies have proved technology spillover effects in different countries or different regions are different, because of different research methods, or the sample data discrepancies. But one of the most important factors is the local human capital. Human capital determines the sensitivity of the host country for the technology spillover and the ability of absorption and conversion for FDI technology spillover effects. Thus, the effect of human capital on FDI technology spillover can not be ignored.Based on the classic model of Caves, the paper uses nearly three decades time series as a sample for empirical research. The paper stands on the point of view from theoretical to empirical research to explain FDI technology spillover effects based on the human capital. Firstly, from a theoretical point of view, the paper explains FDI technology spillover channels, and from the perspective of human capital, the paper analyses the role of human capital in the various channels of FDI teclinology spillover. In order to remove other factors which interfere with the conclusions, the paper firstly confirms the relationship between the scale of China’s FDI and the labor productivity is positive correlation. As we know, labor productivity is often influenced by several factors, so the paper should find out which is the most important factor except FDI scale. Through multiple regression methods, the paper find out that human capital is the key factor for FDI technology spillover and labor productivity. Finally, the paper uses different education level of human capital as interaction terms, and empirically tests the FDI technology spillover effects, showing the result as "two large, middle small". The reason is that senior high school and graduate level of human capital can absorb and convert FDI technology spillover better, and the undergraduate human capital is followed.On the basis of previous research, the paper analyses the role of human capital for FDI technology spillover effect. The full text is divided into five parts:The first part is introduction, introducing the background of this article; secondly, the purpose and significance of the article:finally, introducing the framework and structure of the article.The second part is the literature and theoretical review. The theoretical summary includes technical spillover, economic growth, and human capital theory. The literature summary includes home and abroad literatures, based on human capital literatures on FDI technology spillover and FDI technology spillover literature.The third part describes FDI technology spillover channels in the theoretical point of view and the role of human capital in the various channels.The fourth part is from an empirical point of view. Firstly, the paper should confirm the existence of FDI technology spillover in China; secondly, the paper should confirm the role of human capital in several factors; finally, the paper should use different education level of human capital as interaction terms to do some empirical studies.The fifth part is the conclusion and some policy recommendations, which are relevant of the above analysis.The innovation of this paper is the division of human capital, and the use of education policy as the dummy variable. Such analysis methods can help us find that the structure of our human capital can influence the ability of absorption of FDI technology spillover effects. Therefore, the text of the final gives some recommendations to optimize our human capital structure.