Study On Influence Factor Of Village Human Capital Investment Efficiency

The severe underinvestment in education, training, health and migration in rural areas, led to the inadaptability of the village human capital stock to the requirements of developing a new countryside in China. Moreover, the limited village human capital was overflowing to cities because of unreasonable utilization. This situation had made a great effect on the development of rural economic, and enlarged rural-urban wealth gap. In this context, based on the Schulz's Human Capital theory the paper studied the influence of investment system, basic mechanism and several specific factors to our country's village human capital investment efficiency. Combined with the practice of developing urban-rural dual economics, the research integrated the economic mechanism, decision theory, economic analysis and motivation theories with Parsons modern sociology and Todaro Migration Model. On the base of serious investigation and collecting data objectively, Nanxun villages of Huzhou city in Zhejiang Province were taken as the main investigative and sample-collecting places. The research on village human capital investment revealed the current situation, reasons and development trends to some extent, and also analyzed the relation between human capital investment and villagers'income, but the correlations empirical analysis among investment efficiency system, structural factors and specific factors were rarely discussed. To carry out this problem may theoretically extend the research of village human capital and provide the theoretical explanation and empirical study on influence factors which led to the current status of village human capital investment efficiency. Meanwhile, those findings may provide practical guide in developing the new socialist countryside, and promote the coordination of the urban and rural economics.The scope of village human capital in this dissertation indicates the total capital stock of knowledge, skills, innovation and management methods of rural labor force. The efficiency of investment in village human capital takes the concept of input-output ratio, that is, the ratio of village human capital output to village human capital input.. Besides the introduction and basic theories, the dissertation consists of five parts. The first part studied the current investment system of village human capital which influences village human capital investment efficiency in the two aspects of the subject and means of investment. In this part, it analyzed a number of existing problems emphatically and discussed the ways to solve the problems. Only the existing problems of the current village human capital investment system are analyzed, its influence to village human capital investment efficiency can be studied thoroughly. The basic mechanism affecting village human capital investment efficiency was discussed in the second part. An effective incentive and constraint mechanism is always indispensable to maintain and develop a good system. That is to say, the improving of investment efficiency of village human capital may largely rely on the investment mechanism, whose incentive and constraint mechanism was deduced from its investment system. Particular attention was paid on those village officials, whose communication skills and efficiency had important effect on improving village human capital efficiency and always have impact on the results of matters in villages. As the core section, the third part studied the correlations of those factors influencing the investment efficiency of village human capital. Three approaches were adopted to obtain data for statistic analysis. Firstly, under the help of local government three towns in Nanxun were selected to be widely interviewed. Secondly, a sampling survey of local peasant households was conducted. Lastly, data was collected from the local government. By analyzing the statistics and sorting out the information, the correlation among several specific factors which affected village human capital investment efficiency were found. On the base of studying the influence factors of village human capital efficiency and following the analytical line of thinking on influence factors, the fourth section proposed recommendations for improving the investment efficiency of village human capital. The general strategies were put forward from the three perspectives of institutional analyses, policy guidelines and unification of labor market, followed by a number of corresponding strategies of improving investment efficiency. Furthermore, several suggestions concerning the investment subject and paths were presented towards the end of this section. A proposition was obtained in the fifth section that investment in village human capital was inter–related with the development of the new socialist countryside, as well as the efficiency of investment. For this reason, this part can be seen as the research prospects in the areas of the system, mechanism, efficiency and methods of investment in village human capital.The main findings of the paper can be summarized as follows. Firstly, there existed different relations among several specific factors which influenced the efficiency of investment about village human capital, moreover this situation varied with different level of development regions'socio-economic. Therefore, to achieve Ideal investment efficiency, such as education and training, must attach importance to necessary scale of investment capital, i.e. at least threshold. Secondly, combined with features of countryside, establishing and completing the investment system of village human capital should abide by the basic Rules of Investment system of human capital. So it was factual to study investment system of village human capital by investment subject and paths. Thirdly, the basic mechanism factors affecting village human capital investment efficiency, that is, the completion and perfection of the incentive mechanism factor, can fully encourage the forming and accumulation of village human capital, optimize the configuration and raise the productivity of human capital. Fourth, to improve the efficiency of investment requires not only the general polices of institutional system, policy guidelines and unification of labor market but also the specific measures regarding the investment subject and paths. Fifth, according to the five goals of developing the new socialist countryside, the paper presented requirements on village human capital in scientific and technological quality, income increasing ability, and cultural and ethical quality, etc.The dissertation may have following innovative contributions. Firstly, the paper brought a new perspective to study village human capital investment problems from the influence factors and their correlations. Secondly, the empirical study in this research demonstrated that there was no significant correlation between education and farming or non-farming income, except in some most advanced regions, where training investment had a significant correlation with non-farming income but no correlation with farming income. A significant negative correlation was found between the farming and non-farming income, and so did as the mobility of family members and the farming income. The level of education had no significant correlation with occupation in farming but significantly correlated with migrant workers. In addition, it was argued in the paper that the village officials played a central role in investment incentives mechanism. Thirdly, the paper integrated theoretical concepts with a variety of statistics techniques and approaches, while particular attention was paid to the methodological innovation.