Human Capital And Technology Spillover Of Export And Foreign Direct Investment: An Empirical Research On Hunan Province

With the development of society, global economic integration is becoming more and more implicit. International trade plays an important role in boosting economic development. Foreign trade and FDI not only directly promote the national economic growth, but also are mainly two channels of technology spillover and affect national technology advance and economic development by technology transfer. This paper first explains the definition of technology spillover, exhibition pattern etc. Researches on foreign trade, FDI and technology spillover are also summarized, which can be divided by two parts. Many researches analyze the effect of technology spillover by foreign trade and FDI on TFP and economic growth. The others study technology spillover based on absorptive capability.Under the ground of central rise, this paper emphasizes the spillover by export and FDI in Hunan province and the interaction between the human capital and spillovers. In the light of the thought of Levin and Raut (1997), the role of the export and FDI on growth includes two side: direct effect and indirect spillover. A model is developed to endogenousize the export and FDI. With the time series data in Hunan between 1978 and 2004, the empirical study is implemented by co-integration test. Results show that the economic growth of Hunan depends on physical capital and labor and export and FDI product the active roles on growth. However only the coefficient of spillover effect of FDI is positive. The integrated effect of export is larger than that of FDI. But the two effects is lower than the average level in China.In the dissertation human capital is introduced in the model above to analyze the complementarities between human capital and spillover of export and FDI. The empirical research is done by many econometric methods, such as con-integration test, impulse responses, variance decomposition. The results show that the production elasticity of capital and labor is improved, and human capital can interact with export or FDI to facilitate the technology progress and economic growth in Hunan. However the complementarities depends on the type and period of education. By comparison labor with education degree of regular primary or secondary school can interact better with export or FDI to propel technology progress and economic growth than with education degree of college. It is also found that the role of human capital on technology progress and economic growth is lagged.Based on the empirical findings, this paper provides political suggestion forHunan about economic open and development.