Research On The Impact Of Human Capital On Location Selection Of Foreign Direct Investment In China

Since the reform and opening up, the foreign direct investment in China showed a rapid growth trend. Traditional view on the main motive of that foreign merchant invest in China is selected to its huge domestic consumer market and the cheap labor resources. However, with the knowledge economic era comes, there is a problem begun to attract attention of many scholars that FDI distribution is very uneven in various regions in China, showing a clear pattern that the west is lower than the east from the present viewpoint. Midwest had the large number of surplus labor and low labor costs, but this comparative advantage did not produce enough attraction to FDI. Many scholars attributed the reason to the regional human capital accumulation, considering that the human capital stock and investment is important for the effective use of FDI. The human capital of a region can directly affect the labor productivity in this region, as well as the digestion and absorption capacity which brings by FDI of advanced technology for effective. At present, the huge differences of regional human capital stock in China exist, which result in making investment location choice(especially high-tech investment in knowledge-location choice) of foreign merchant consider its own strategic interests in investment,choosing the starting point of the areas with high human capital deposit.So, in our country,human capital how to achieve the specific mechanism on FDI location choice and whether there is reasonable evidence of effectiveness from the perspective, which are trying to solve this problem. Articles will prove this from the combination of theoretical and empirical perspective on these issues. First, the article showing the background and significance of the research described and the literature home and abroad, a brief description of the problem of the status quo, then scholars of the theory of the formation, through foreign direct investment theory and related content Human capital theory, to establish a way which using human capital to explain FDI location choice theoretical framework. The focus of the article in part by a brief review of foreign direct investment in China's development process, using the existing statistical data, analysis of the regional differences in the level of human capital, foreign direct investment status and regional distribution, the ultimate impact of FDI on human capital, location Select the role of the model. The empirical results show that:human capital stock and human capital investment on the foreign direct investment location choice have a positive impact. Finally, sum up the empirical results, and on this basis, all regions of the country how to better attract foreign direct investment policy recommendations accordingly.