The effects of foreign direct investment on human capital development in China's economic and technological development zones (ETDZS).

摘要

Foreign direct investment (FDI) greatly contributes to human capital accumulation by raising the demand for skilled labor and the incentive for participation in higher education. The goal of my thesis is to determine how FDI affects human capital development in China's Economical and Technological Development Zones (ETDZs) by using the four stages of FDI utilization as the object of study, which covers 30 Chinese provinces from 1995 to 2010. Data presented here is collected from the China Statistical Yearbook and the China Labor Statistical Yearbook with a focus period of the 2000s by comparing the differences between "before" (from 1995 to 2002) and "after" (from 2003 to 2010) the policy changes implemented in 2002. The fixed effect and random effect estimations were used to investigate how human capital accumulation was affected by the third wave of ETDZs were designated in China. Results demonstrated that the inflows of FDI during the 2000s have significant benefits for human capital development, whereas, no significant effects are found for higher education.