Study On The Relation Between Human Capital And Economic Growth

Accompany the coming of Knowledge Economy, China takes part in World Trade Organization(WTO). It becomes an significant issue for how to keep an steady and continuous economic growth. This paper firstly explains the conception and basic theory of Human Capital, and then dwells on such aspects as: investment, performer, formation, profit and allocation of Human Capital. On the basis of previous explain, it studies the relation between Human Capital and Economic Growth, and tentatively presents the theory of Innovational Labor Value, the method of calculation, the building of mathematical model and relevant analysis. Finally, it summarized on how to use Human Capital theory to analyze relevant domains, such as education, agriculture, open-economy, and presents suggestion on the application of government policies and the orientation of government function.