Empirical Research On Human Capital And Economic Growth In The Northeast Area

Northeast region, including Heilongjiang, Jilin and Liaoning Province, is China’simportant agricultural production, heavy equipment and equipment manufacturingbase. This region owns abundant natural resources, strong industrial base and plays avery important role in our national economy.This region also has obvious advantages in science and technology talent andforefront in the nation in total technical personnel and the total amount of professionalpersonnel. Liaoning province is a large talent-training base and is known as "talentfactory’. There are70colleges and universities which cultivate120,000graduates,40,000software professionals and180000professional and technical personnel everyyear. A total of2.61million talents make this region rank fourth in the whole country,1,906,000professional and technical personnel enable this province to list sixth in thenation; Liaoning ranks the fourth place in the country with a total number of7366professionals who enjoy government subsidies.Jilin is a large science province and has a total number of1.36million talents,accounting for2.14%of the total national personnel. It ranks sixth in number ofgraduate students in10,000people and ranks eighth with the number of doctors per10thousand people in the country. This region has a large human capital stock,high-quality talent and high degree of specialization. Heilongjiang province has alarge number of state-owned enterprises, research institutes, with Harbin Institute ofTechnology, Harbin Engineering University and other famous universities aiming tocultivate a large number of high-level professional and technical personnel andapplied science talent. This region is also rich in human resources.However, after the reform and opening up, especially in the20th century to thelate1990s, economic growth in northeast region was slowing, the total GDP proportion in the whole country gradually decreased from11.33%down to11.06%during the1995’s then dropped to9.97%in1999and reduced to9.3%in2004, whichsignificantly contrasts with the rapid development in east region with poor naturalresource endowment and weak industrial base. The regional disparities in thenortheast are increasingly significant and growing. The relatively backward economicdevelopment in northeast region does not match with the high level of human capitalin this region, the human capital advantage did not bring the advantages of economicgrowth and the economic recovery is facing a dilemma of lacking intrinsic motivationand difficult to form long-term economic development mechanism.The article firstly discusses the concepts of human capital, the impact factors andmethods of measurement; Then it combs the previous studies of a large number ofresearch scholars on Human Capital and Economic Growth in the Northeast region,makes comments and lays the foundation for the analysis of the text.Secondly, the paper reviews the evolution history and current status of humancapital development in the northeast region in the overall and sub-region level,analyzes the overall and sub-regional formation process, characteristics and impact ofhuman capital on economic development and draws inspiration.Thirdly by building an econometric model the article makes an empiricalanalysis of the relationship between human capital and economic growth in Northeast.In the empirical analysis, on the basis of three hypotheses "influence of differentlevels of human capital on northeast China’s economic growth,""Each level of thehuman capital" innovation effect "on the northeast region’s economic growth,""impact of human capital distribution structure on Northeast China’s economic growth", using human capital as exogenous variable and endogenous variable separately, thispaper constructs “Human Capital and Economic Growth Measurement Model” and“Human Capital ‘Innovation Effect’ and economic growth measurement model” andconstructs “Human Capital distribution and Economic Growth structure measurementmodel” by calculating the coefficient of human capital distribution structure to studythe direct impact and effects of human capital on economic growth in the Northeast,try to analyze the action mechanism of various grades of human capital on economic growth in the Northeast region, explore the relationship between human capitaldistribution structure and economic growth in Northeast, find and summarize thesituation and the problems of various grades of human capital and human capitaldistribution structure in the Northeast region as a whole and in each region ofHeilongjiang, Jilin and Liaoning.Fourthly, according to the previous analysis of human capital and economicgrowth status and the empirical results, this paper makes further analysis on thecauses why there exists high level of human capital but low economic developmentgrowth in the northeastern region, discusses the factors that restrict the economiceffects of human capital in northeast region. Finally, the paper puts forward policyrecommendations on human capital to promote the economic development of thenortheast region.