An Empirical Study Of Relation Between Human Capital Structure And Economic Growth In Each Region Of China

There have constantly been heated discussions in the academic circle since Schultz presented the concept of "human capital". It’s not until the 1980s when Romer and Lucas put forward the human capital theory that the theoretical frame of the theory has completed. However, there are still quite a few difficulties facing us, one of which mainly is Quantitative Study of human capital 。 Firstly, the difficulty lies in how to calculate the stock of human capital. The ways through which human capital forms are mainly education, health, migration and learning by doing, among which, however, the index are difficult to quantify or impossible to count, so some representative index are used to calculate human capital, mainly education index. Secondly, due to heterogeneity of human capital, the best human capital structureunder a certain situation of human capital varies according to different regions with different levels economic development. However, there is no consensus of the definition of human capital structure nowadays.This article has studied the calculation of human capital stock based on the ways how human capital takes shape and existing researches, with education and health human capitals considered, Production Function model applied and proxy variable of health human capital being reciprocal of death rate of different regions in China. As for human capital structure, human capital is divided into three groups based on the required years of education,namely Basic human capital, Skilled human capital, Professional human capital. Moreover, based on Romer’s Two-sector model, through mathematical derivation and with human capital structure introduced, the result of mathematical analysis shows that different human capital structures have different impacts on economic growth with a certain amount of stock of material capital, human capital and some other factors.As far as the concrete econometric analysis is concerned, the research samples used in this article are related data from each year’s statistics annals between 1994 and 2001. Two econometric analysis have been done in this article. One is econometric analysis of the relation between stock of human capital and economic growth, the result of which shows that the health capital in the Eastern region of China has a weak negative correlation impact on economic growth while in the middle-western region of China it has a positive promote on economic growth. The other is the analysis of the relation between human capital structure in different regions in China and economic growth, the result of which shows that the role Professional human capital plays in promoting economic growth is relatively weak, that increasing stock of Professional human capital has a limited impact on promoting economic growth and that Professional human capital in the Eastern region of China should be transferred to the Middle region of China.Basic human capital and Skilled human capital in middle region and economic growth have a weak negative correlation and Professional human capital promotes economic growth notably so it is encouraged that Basic human capital and Skilled human capital in the middle region should be introduced to the eastern and western regions. Meanwhile, there should be more investments in compulsory andSecondary school education in the middle region so as to precipitate the transforming of Basic human capital and Skilled human capital into Professional human capital. However, in middle and eastern regions, the level of accumulation of human capital in the western region is relatively low. To depend only on the increasing high-level Professional human capital cannot be anefficient solution to the economic growth problem caused by the western human capital structure but it is necessary to improve the average level of human capital in the region to promote economic growth.As far as the ways how human capital and its structure take shape is concerned, education is the main way how they take shape, which means that the formation of human capital lags behind the investment in human capital, especially the investment in compulsory education, so the government should have a long-term and overall planning for education investment.As far as economic growth model is concerned, China is gradually shifting from extensive growth model depending on labor-intensive industries to sustainable development model relying on advanced science and technology and increased human capital. What’s more, economic structures of different regions change with different economic development levels, which entails corresponding adjustments of human capital structures of those regions. This article has studied the relations between human capital in different regions of China and its structure and economic growth and will provide a basis for different regions in China as how to reasonablyallocate education and medicine resources and adjust human capital structure.