TY - JOUR
T1 - Role of human capital on regional distribution of FDI in China
T2 - New evidences
AU - Salike, Nimesh
N1 - Publisher Copyright:
© 2015 Elsevier Inc.
PY - 2016/2/1
Y1 - 2016/2/1
N2 - This paper investigates the regional distribution of FDI in China with a focus on human capital from completely different and unique measurement. The novelty is the use of a set of six human capital indices: endowment, utilization, demography, productivity, support and health. It uses panel data estimation for 31 regions of China for 2002-2013 with the consideration of usual determinant variables in FDI study. The results suggest that foreign investors value the availability of human resources, both in terms of present (endowment) and future (demography) supply, as the most important factor in making their investment decisions. Health of labor force and quality of people working in scientific and technical fields were also found to be significant. Furthermore, local market size, infrastructure and location (being in coastal region) are significant determinants with western region, compared to central and northeastern regions, losing out the most to eastern region.
AB - This paper investigates the regional distribution of FDI in China with a focus on human capital from completely different and unique measurement. The novelty is the use of a set of six human capital indices: endowment, utilization, demography, productivity, support and health. It uses panel data estimation for 31 regions of China for 2002-2013 with the consideration of usual determinant variables in FDI study. The results suggest that foreign investors value the availability of human resources, both in terms of present (endowment) and future (demography) supply, as the most important factor in making their investment decisions. Health of labor force and quality of people working in scientific and technical fields were also found to be significant. Furthermore, local market size, infrastructure and location (being in coastal region) are significant determinants with western region, compared to central and northeastern regions, losing out the most to eastern region.
KW - China
KW - FDI
KW - Human capital
UR - http://www.scopus.com/inward/record.url?scp=84955620996&partnerID=8YFLogxK
U2 - 10.1016/j.chieco.2015.11.013
DO - 10.1016/j.chieco.2015.11.013
M3 - Article
AN - SCOPUS:84955620996
SN - 1043-951X
VL - 37
SP - 66
EP - 84
JO - China Economic Review
JF - China Economic Review
ER -
