(Institute of Quality Development and Strategy, Wuhan University;Coordination Innovation Center of Macro Quality Management in Hubei Province)
Abstract: Under the economic pressure of labor dividends disappearance and the excess capacity, which strategic choice of investment enterprises will choose is one of the hot issues worth studying in the face of inadequate institutional property and finance environment. The paper uses six aspects of enterprise subjective evaluation data that include means of financing, market demand, innovation, intellectual property protection, land, government regulation and approval to build the institutional environment perception index system. The paper applies OLS regression estimation, instrumental variables (IV) estimation and limited information maximum likelihood estimation method (LIML) empirically analyses the correlation of institutional environment perception and human capital. The empirical results show that there is a significant positive causal effect between the institutional environment perception and human capital. The greater the perceived barriers of institutional environment for the development enterprises have, the more they would choose to invest in human capital. Based on this conclusion, the paper suggests that the government should put in more efforts on the institutional environment construction with property and finance at the core. The government should also pay more attention to infrastructure construction with vocational and technical education at the core. It’s also needed to increase preferential policies for small and micro enterprises as the main target of the special training.
Key Words: Institutional Environment Perception; Human Capital; Enterprise Behavior