Study On The Influence Of FDI On Chinese Human Capital

Human capital and FDI are the key drives of the economic growth in the developed and developing countries. They do not affect the growth individually. FDI is very important for the development of human capital of the host country. Meanwhile, enhanced human capital increases FDI of the host country by making the investment environment attractive to foreign investors.FDI is a huge engine of the increase of Chinese economy. Human capital is a significant resource that can achieve rapid economic growth. By the end of 2005, Contracted foreign direct investment has reached 1285.427 billion US dollars, and realized foreign direct investment has achieved 620.72 billion US dollars in China. The large amount of foreign capital has made up the insufficiency of domestic capital. Moreover, the overseas advanced technology has accelerated the industrialization process and promoted upgrade industries of our country. foreign funded enterprises are also running in most of fields in China, they have been using a range of training to enhance Chinese employees' working abilities. In a word, they mean a lot to Chinese human capital. Therefore, the research on the impact of FDI to Chinese human capital has important academic and practical significance, in order to know the relationship between FDI and economic growth better.The primary intention of this paper is to examine the characteristics and tendency of FDI and human capital and then to study the influences of FDI on the development of human capital in China. This article based on the fundamental research results integrates the latest developments of foreign direct investment and human capital, takes use of many tables and figures, theoretically and empirically, to analyze thoroughly the influence of the foreign funded enterprises on the Chinese human capital.This paper is divided into five chapters. Chapter one is a brief introduction on background of study, research meaning, structure and relevant concepts of this article. Chapter two is mainly a theory survey on both FDI and human capital. Chapter three describes the situation of FDI in China, the latest development of foreign funded enterprises and human capital briefly. Chapter four is a key one, which researches the effect of FDI on the quantity and effectiveness of human capital in our country theoretically and empirically. In addition, it shows that the effects of FDI on Chinese human capital are positive. Chapter five makes a brief summary of this paper and put off some proposal.