The Effect Of Human Capital On FDI Technology Spillover

FDI (Foreign Direct Investment) investment scale increases world-widely, and theglobal annual average growth rate of FDI is about14%in the thirteen years from1985to2008. However, as a carrier of capital, knowledge and technology, on the one hand,FDI brings the money which the economic backward areas needed, and satisfies thematerial conditions in economic growth and technological progress. On the other hand,the multinational enterprises invest the plants, the workstations and machineryequipment in the host country, meanwhile which also lead in the advancedmanagement and technology and the first-class human capital to the host country. Thespillover effect was produced by which the multinational enterprises use the closelyrelevance between the upstream and downstream in Industrial chain, or establish theindependent research and development organization. Thus, not only can promote thetechnology level of the host country, but also can promote the technology progress ofhost country.With the foreign enterprises swarming into the market, knowing that there existsspillover effect or not in our country, what kind of channel it spillover and whatconstraints influence the spillover effect, which has positive and practical meaning inattracting investment and making relevant polices for our country. FDI technologyspillover is regarded as one of the most important way to cultivate technologicalprogress in the host country. Many empirical studies have attributed that thetechnology spillover is disparity in different areas, and the effects of their spillover isalso different. At its most basic, the local human capital also has important relationshipwit technology spillover in spite of the research methods and sample differences. Forone thing, Human capital decides the spillover in the host country. For another, it alsohas the ability of absorption and transportation. Thus, human capital on FDItechnology spillover effect cannot be ignored.This article is on the basis of the model constructed which from most scholars forreference, using nearly30years in Chongqing industrial sector time sequence data assample, analyzing the FDI technology spillover effect of Chongqing in the role of human capital. Based on the measure spillover effects of FDI in Chongqing level ofhuman capital on the basis of education level, population structure and health levelthree aspects of the measurement and research of human capital factors in the processof FDI technology spillover effect in Chongqing, further clarify the technologyspillover effect of foreign investment to the influence of the local enterprise technologyprogress and economic development.From what we have analyze in the article, it may safely shows that human capitalplayed a vital role in the FDI technology effect, which from the perspective of laborforce was limited by education years. According to the human capital empiricalanalysis, FDI technology spillover effect in Chongqing is closely relevant withdifferent levels and structures of the human capital. But standing on the view of thegovernment’s attitude towards medical and health, it shows that Chongqing investmentin health care did not cultivate the role of technology spillover of FDI. And at the endof the article, we put forward some corresponding suggestions.