The Study Of The Impacts Of Foreign Direct Investment On Human Capital Agglomeration In Jiangsu Province

Since China's economic reform, facing the same opportunities, however, each region's attraction to foreign direct investment has a great shows difference. Jiangsu is one of the fastest, most productive provinces in the current China Open Economy. Foreign direct investment is playing an important role in its development. Being the engine of economy, FDI also has great impact on human capital as long as economy growth. It is true that human capital has influence on FDI. Whether FDI has impact on human capital should be discussed. It has become an increasingly important social issue. With reduction of demographic dividend and social progress, the quality of human capital worth more attention. Jiangsu province attracted much FDI. However, FDI doesn't distract evenly as long as human capital which presents feature as "South more, North less". This paper selects Jiangsu Province to the study as to explore the impact of foreign direct investment on human capital accumulation which undoubtedly has practical significance and academic value.Firstly, on the basis of sorting out and review of the relevant literature of FDI and human capital, the paper discusses the current situation of foreign investment and how does it influence human capital of in Jiangsu Province which provides a theoretical basis for later research. Secondly,This paper analyzes the distribution of foreign direct investment in Jiangsu province and the differences of human capital of Jiangsu Province in southern, central and northern. This paper identifies the condition and changes of human capital though designing human capital agglomeration index. On the basis of it, the paper uses panel data model to do the empirical research of impacts of FDI in Jiangsu Province on human capital accumulation.Studies have shown that, other things being unchanged, when FDI increased by 1%, human capital accumulation would increase 0.03percentage points, indicating that foreign direct investment contributed to the accumulation of human capital. It is conducive to the healthy development of regional economy. Then, the paper chose Suzhou as an example to give a detailed analysis of the impact of FDI on human capital agglomeration. Finally, some suggestions of proper use of FDI and human capital accumulation are given.