The Study On The Influence And Convergence Of Human Capital On Economic Growth

Since the reform and opening-up, China achieved an annual average high growth rate ofover8%, which is known as the "Chinese miracle". However, accompanied by high economicgrowth in our country, some deep-seated contradictions which constrain socio-economicdevelopment is being gradually surfaced, one of which is non-balanced regional development.The neoclassical theory of economic growth and new economic growth theory presents theirown interpretation of the differences between regions. The neoclassical theory of economicgrowth suggested, controling the condition of human capital investment and technologicalprogress, the regional differential in economic growth will be reduced as the backward areasowning faster capital growth rate, each level of output per capita in the region will eventuallyconverge to its own steady state. The new growth theory suggested that due to theaccumulation of knowledge has increasing marginal productivity,the developed areas boundby higher human capital stockand technological progres level will maintain a rapid economicgrowth rate.That is, the regional economic differences may not be able to disappear with thepassage of time.It can be said that economic growth convergence hypothesis contains the possible path tonarrow the regional differences. If differences in human capital is the main causes of thegrowth of regional economic differences, examining the regional disparities in the status quoof China ’s human capital and economic growth, exploring the differential mechanism of thehuman capital on regional economic growth, measuring the contribution of human capital,will provide a theoretical reference and decision basis to reduce regional disparities. This isthe purpose of this study.The main contents of this paper is divided into seven parts, The first chapter elaboratedthe research background and significance, research objectives and main content and researchideas and methods, including research innovations. The second Chapter combed the theoryand literature of the role of human capital on regional economic growth, refined themechanism of human capital on regional economic growth. The third chapter of the studyanalyzed the status of human capital and regional economic growth in China. Then took useof the cost method, the education indicators method,and a a comprehensive index method toestimate the regional and inter-provincial stock of human capital, take analysis the regionalcharacteristics of the distribution of human capital differences. Examined the interactionbetween human capital and regional economic growth. The fourth chapter divided Lucashuman capital model into Effective model and Human capital externalities model. In Effectivemodel, extended human capital to education and health, estimated regional economic growthand its rate. Tried to verify the existence of human capital externalities in the microperspective using China Health Nutrition Survey data. The fifth chapter started from theindirect mechanism that "human capital affect total factor productivity through technologicalprogress,thus contributing to the economic growth",explored the role of human capital level,human capital structure, human capital inequality on TFP; used the test method of economic growth convergence to investigate whether the investment in human capital policies help tochange the path of convergence of regional growth. The sixth chapter abandoned the theassumption of traditional economies independent, added spatial factors on the basis of theoriginal model, which examined the spatial spillover effect of human capital to regionaleconomic and TFP. The seventh chapter contains main conclusions and research prospects,The major findings of this study include:Firstly, since the reform and opening-up, with the development and popularization of thenine-year compulsory education work, the regional gap of average level of human capital isgradually reduced. However, the higher level gap of workers within the regions continued towiden, which is the mainly unequal source of China’s human capital distribution. Secondly,there are significant regional differences in the mechanism of the human capital on regionaleconomic growth. Eastern region mainly through the indirect way of human capital topromote the total factor productivity growth;central region rely mainly on effective laborinput implies human capital (including education and health) to economic growth, eventhough there was low human capital stock in western region, its contribution of humanexternalities to economic growth is next to eastern region. Thirdly, using China Health andNutrition Survey(CHNS),the results showed that enhancing the average level of urban humancapital not only can increase the wage level of the low human capital, but easing the wagelevel of the high human capital decreased due to the law of supply and demand. In terms ofregions, coastal areas of human capital externalities effect is stronger than the inland areas.That is, in our country and region, human capital externalities in city does exist. Fourthly,human capital plays a positive role in promoting the regional TFP, besides that, the effect ofhuman capital heterogeneity on the provincial productivity growth in China. Human capitalinequality is not conducive to the regional productivity growth. Fifthly, there is distinctivecharacteristics of the threshold on the convergence of human capital to economic growth andTFP growth. If the province can not cross the threshold of human capital development,regional economic growth will converge to the respective steady state, and backward areaswill fall into the “low-income trap”. Finally, taking into account the interaction betweengeospatial, human capital is more likely to act on economic growth by promoting this indirectway of TFP growth.