A Research On Differences Of Regional Human Capital And Relativity Of FDI Attracted By China

Since 1990s, foreign direct investment (use FDI for the abbreviation in thefollowing paragraphs) attracted by China has been increased rapidly, and China hasalready become the world's biggest country of FDI inflows. However, the distributionof FDI in regions of China is extremely uneven, the proportions of the eastern regionson the whole China are over 80% from 1979 to at present, whether it is the number ofFDI contracts, contract amount of FDI projects or the actual value, while those of thecentral and western regions together are less than 20%. Why is there such aphenomenon? What factors determine China's foreign direct investment inflows?What role will human capital play in this process? This paper attempts to explain theeffect of human capital on attracting FDI from the human capital perspective, fromthe aspects of the stock and education level of human capital, along with the timetrend, in order to provide a new perspective to explain the regional distribution of FDIand different regional attractions. Therefore, the analysis of this text, to a certainextent, reinforces and deepens the FDI regional choice theory from the view of humancapital.Starting from China's reality problems, this paper analyzes the currentdistribution and differences of FDI and human capital in regions. And reviewed manyrelated literatures on the FDI regional determination and the relationship betweenhuman capital and FDI. Then it proposes assumption on this topic and uses realeconomic data of our country, establishes econometric model and carries empiricalanalysis of the effect of human capital on attracting FDI, tests the validity andpracticality of the assumptions. The results show that human capital is an important factor on the number of contracts and project scale of the FDI that regions attract,which will be more and more important as time pasts by. The eastern, central andwestern regions play different roles on the exertion of attraction effect. Meanwhile theattraction of high-level human capital on FDI becomes increasingly prominent. Basedon the empirical analysis, this paper presents some corresponding investmentmeasures on human capital, and also sums up the problems that need to be furtherstudied.Based on learning the achievements of outstanding research both at home andabroad, through deep empirical analysis this paper draws the following coreconclusions: human capital is one of the most important determinative factors onattracting FDI, and the role of human capital becomes increasingly important.