Scale And Quality Of Vocational Education In China On Study On The Influence Of FDI Location Selection

In recent years,the global economy has suffered shocks and China has faced tremendous pressure from the external environment to attract high-quality foreign direct investment.The active introduction of foreign direct investment,as an important element of the open-door policy,has been an important driving force for China’s economic growth since the reform and opening up.Vocational education,as a type of education,plays an important role in economic and social development.Currently,China is vigorously promoting the development of vocational education with the aim of improving the labour force human capital market and matching the labour market demand.Human capital is one of the important influencing factors of foreign direct investment,thus providing a basis for this paper to explore the impact of vocational education development on the location choice of FDI from the perspective of vocational education development.Exploring the impact of vocational education development on FDI at this stage is conducive to stabilising foreign investment and promoting structural and quality upgrading of FDI in the current complex international environment.On the basis of exploring the mechanism of vocational education’s influence on FDI location choice,this paper conducts an empirical study using provincial panel data from 2003-2019,and finds that the scale and quality of vocational education can have a significant impact on the location choice of foreign direct investment :vocational education can influence FDI entry by improving the human capital stock and structure of the labour force,paving the human capital foundation for industrial agglomeration and technology spillover;the expansion of vocational education has a significant contribution to overall FDI and manufacturing FDI,productive services FDI and non-productive services FDI,and the advanced industrial structure has a positive moderating role in the influence of vocational education scale on FDI The quality improvement of vocational education promotes the inflow of overall FDI and manufacturing FDI,but the effect on productive services FDI and non-productive services FDI is insignificant,which to a certain extent indicates that the labour force human capital stock enhancement effect of vocational education development is better than the structural improvement effect.An analysis based on regional heterogeneity shows that the promotion effect of the expansion and quality improvement of vocational education on FDI inflows is greater in the central and western regions than in the east,probably because the scale and quality of vocational education development is limited in the central and western regions,and the marginal contribution of vocational education to FDI inflows is greater than in the eastern regions.Based on the findings of this paper,in order to bring into play the human capital improvement effect of labour formed by the development of vocational education to promote foreign direct investment,it is necessary to increase the financial investment in vocational education and optimise the structure of investment in education,while in order to meet the needs of high-quality development and industrial structure upgrading,it is necessary to improve the quality of vocational education and promote the construction of a modern vocational education system.In addition,it is necessary to optimise professional settings,focus on the integration of industry and education,strengthen school-enterprise cooperation,promote the internal development of vocational education in depth,and guide the flow of foreign direct investment.