The Influence of FDI and Human Capital Inflow on Technological Progress

Abstract

FDI and human capital flow, as an important path of international technology diffusion, is an important driving force for technological progress in a region. Using panel data of 30 provinces and cities in China, this paper examines the relationship between FDI, human capital flow and technological progress in different regions of China. The empirical results show that the two approaches play an important role in technological progress in different regions of China, but the contribution degree is different. Various regions should implement appropriate policies to make full use of the technology spillover effect of export and human capital flow to accelerate technological progress, and form a smooth domestic technology diffusion mechanism to accelerate the transmission of foreign RESEARCH and development, and finally promote the coordinated development of regional economy.