A Positive Analysis On Human Capital Effecting On The Economic Growth Of Eastern And Western China

According to the modern economy, human capital is seen as the endogenous factor and "engine" of economic growth and development and because of its characteristic of increasing returns, human capital becomes a source spring of economic growth. Schultz, a famous economist, firstly put forward the concept of human capital and explained the motive force of economic development that is new and different from the traditional economic theory. As the home and foreign economists further research, they blaze new trails and make the theory of human capital perfect. At the mean time, the theory of new economic growth develops vigorously. Many economic models, including "learning by doing" , are created on the foundation of human capital theory and bring the factor of human capital in. A large amount of domestic and abroad economists found that human capital has a large, positive and statistically significant effect on economic growth by their researches. But up to now, there are relatively small amount of domestic scholars who use this theory to analyze positively our country's regional growth by full and accurate statistical data, but in this thesis, the author will do some of this job. The paper will create a comprehensive objection about human capital and make it indicate human capital storage. It also compares human capital storage and analyzes the differences of human capital' s contribution to regional economy between eastern China and western China, finds the important reason that economy of western regions developed slower and also presents some corresponding policies and suggestions about west development. We must pay attention to the factor of human, invest in human capital, improve the human capital storage of west China, bring its full role in the west economic growth and reduce the differences between the eastern and western regions.