Human Capital and International Capital Flows: Evidence from China

作者：Zhenshan Yang, Yinghao Pan, Dongqi Sun, Li Ma · 发表于：International Regional Science Review · 年份：2021 · DOI：10.1177/0160017621989421 · 被引用次数：14 · 研究领域：International Business and FDI、Global trade and economics、Fiscal Policy and Economic Growth

The pattern of international capital flows has changed dramatically in the process of globalization. In this study, we argue that human capital (HC) facilitates a region’s reversal from being a net recipient of external resources to being an active contributor in the global market. Using a panel vector autoregressive regression method, we examine the relationships among regional HC, foreign direct investment (FDI), and outward FDI during 2004–2015 in China. Our results show that HC plays a key role in both attracting FDI and generating outward FDI. The findings contribute to research on the dynamic capacity building of regions participating in the global economy, especially strengthening HC for local economies participating in the global economy as either investment recipients or contributors.