Difference Of Human Capital And Regional Economic Growth

It is undoubted that there are links between economic growth and investment in human capital. Cross-country's comparison shows that regions with higher stocks of human capital experience faster economic growth. For example, economic development of a country bases on health care, schooling and on-the-job training, technological innovation, employment and labor mobility, etc.But from data of Zhejiang province and Shanxi province, we find that Shanxi is better than Zhejiang with indexes of health care, schooling, technological investment expect innovation. The relationship of two provinces between human capital and economic growth is not fit for traditional human capital theory. In fact, most studies on Zhejiang economic growth were not focused on human capital but physical investment, technological innovation and other way of institutional innovation. And many domestic academic achievements show that economic growth does not correspond to education input. So, this paper tries to reveal the relationship between human capital and economic growth. And we do not focus on numbers and data to measure human capital but difference of human capital between Zhejiang and Shanxi. The difference of human capital includes difference of factors combination and human capital structure. The former contains combination of human capital and physical investment, the latter optimizes the efficiency of human capital distribution and change.Therefore, the main body of this paper covers six chapters which can be divided into four parts. The first part, which is the second chapter, gives the comments on the theoretical research about the relationship between human capital and economic growth. These authentic proof models provide a basis of the analysis in the paper. And the first part also gives the comments on the research of domestic scholars.The second part which contains two chapters establishes the method to analyze the effect of difference of human capital. In the third chapter, we study some data on human capital of Zhejiang and Shanxi, such as health care, schooling, technological investment and innovation, etc. In the fourth chapter, we develop that difference of human capital is the key to different contribution of human capital to economic growth in different areas.The following part, which also contains two chapters, deals with empirical research on effect of human capital on growth of Zhejiang and Shanxi. The fifthchapter dewell on the difference of factor combination. In the fifth chapter, we find that stock of human capital in Zhejiang is higher than that in Shanxi because of labor mobility. In this chapter, we use human capital theory, catch-up model and interactions with technical change to investigate the combination of human capital and physical capital. We also study on enterpriser resources of Zhejiang and Shanxi to investigate factor combination inside human capital. Based on the results, we find that efficiency of physical investment in Zhejiang is higher than that in Shanxi because of better combination of human capital and physical capital and better utilization of enterpriser resources. In the sixth chapter, on the one hand, we use laborer's income to measure return of human capital and human capital property right to study institutional innovations. Obviously, higher return of human capital can stimulate more labor production and institutional innovations in Zhejiang can improve the efficiency of human capital distribution and change.The last part, namely the last chapter, is our conclusion and suggestion. In this section, we conclude that difference of human capital contributes to different economic growth. And we give west areas includes Shanxi some advice from our empirical research.