The level of human capital in innovative firms located in China. Is foreign capital relevant?

• Type: Article in International Scientific Journal
• Date: 2012

Authors

Aurora A C Teixeira (Author) FEP; Li Shu (Author) Other

Journal

Title: Journal of the Asia Pacific Economy

Vol. 17 No. 2

Pages: 343-360

ISSN: 1354-7860

Publisher: Taylor & Francis

Indexing

ISI Web of Knowledge - 4 Citations

ISI Web of Science

Scopus - 5 Citations

Econlit

Scientific classification

FOS: Social sciences > Economics and Business

CORDIS: Social sciences > Economics

Other information

Authenticus ID: P-002-GGS

DOI: 10.1080/13547860.2012.668095

Abstract (EN): Studies on the impact of foreign direct investment (FDI) on the Chinese economy have essentially focused on the relationship between FDI, productivity and economic growth, revealing a tendency toward sectoral, regional and macroeconomic empirical studies. This work aims to complement these approaches and contribute to the rather limited literature on the relationship between FDI, Human Capital and Innovation at a corporate level. Based on a set of large and innovative firms (national and foreign capital) located in China, we have concluded that (1) the direct impact of foreign capital on the level of human capital in firms is negative, that is no evidence was found suggesting that FDI has a positive influence on their human capital and (ii) in indirect terms, by means of investment in R&D (research and development) activities, FDI has a positive impact on general human capital (i.e. formal education). These results suggest that for China to benefit from FDI, it is necessary to implement a selective policy to attract FDI, taking into account more technologically advanced, R&D-based projects.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 18