Human Capital Investment In Ningxia: Positive Analysis And Strategic Choice

Modern economic development practices indicate that human capital is not only the engine of economic growth but also the basic power of economic sustained development. There is a higher requirement for human capital to realize the change from traditional economy to modern economy, especially in the backward areas. Since 1980s, the research achievements of Becker and Robert Lucas state that the economic development is very difficult to start if the initial human capital of developing countries is lack or below standard and their fertility rate is high. And the economic development will return to backward and stable state, even if it has been started. From this point, it is becoming an inevitable choice for the economic development in Ningxia to devote major efforts to develop human capital, strengthen human capital investment and increase human capital accumulation.This thesis uses the method which combines Normative Analysis with Positive Analysis, bases on human capital theories, puts forward a total thinking and specific content of human capital investment strategy by analysing and studying present condition of human capital and its investment in Ningxia in order to promote the economic and social development of Ningxia.This thesis thinks that human capital investment strategy in Ningxia should consider the sustainable development of local economic society, base on the present condition of human capital, bring human capital accumulation mechanism into play, in which the leading condition is educational investment, and lay emphasis on increasing human capitalstorage of poverty areas on the base of improving people's quality. We should construct a human capital accumulation mechanism which the governments have basic effects on basic human capital investment, enterprise and individuals have leading effects on professional human capital investment, and establish a human capital environment which can train, attract and use talents.