Analysis of the Impact of International Capital Flows on Human Capital Investment:Based on the Constraining Effect of Labor Income Share
Developing new quality productive forces is an intrinsic requirement and key focus for promoting high-quality develop-ment,while increasing human capital investment is a crucial factor in driving innovation and constructing new quality productive forces.This paper analyzes the reasons for human capital investment through a theoretical model and examines the effects of inter-national capital flows on human capital investment,using empirical analysis based on national-level panel data.The study finds that international capital flows have a weak positive effect on human capital investment in developing countries.However,when the labor income share increases,international capital flows can have a positive effect on human capital investment,thereby pro-moting economic growth.Due to the constraints of total factor productivity and labor income share in developing countries,inter-national capital inflows primarily promote imitative and follow-up investments,leading to credit expansion and structural market prosperity.Only when a country's technological level improves and its market institutions become more developed can its innova-tive investments increase.Therefore,countries should focus on increasing the labor income share during economic development,and based on institutional improvements,promote the growth of innovative investments to drive the development of new quality productive forces.
international capital flowshuman capital investmentlabor income share
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