The Function Of Human Capital In Economy Gathers And The Regional Industrial Structure Development

While analysing economic activity and economic development, traditionaleconomic theory always abstract economic activity to come out form concrete geographicalenvironment, Analyse its regularity.But it has neglected the geographical law of theeconomic activity. It is exactly a defect in this kind of research field, lead to the fact that thetraditional economic theory is to there are very great shortcomings on the explanation of therealistic economic phenomenon. This is exactly a reason rising of a regional economictheory vigorously in the modern western economic theory too. The author thinks the main geographical feature of the human economic activity iseconomy assembles. It is setting up on the foundation of the traditional theory in this thesisto analysis the economy assembles and the regional industry's economic behaviour. Theanalysis frame of the whole has fully drawn lessons from the advantage of every theorymethod in the past. Begin from a simple gathering model, through complicating the authorsetting up a relatively more intact analysis system of the model, to describe economy gatherprinciple and characteristic that the behavior evolves the course and forms. The author paysattention to Smith's theory, think labor division and specialized production is the basicreason of economic growth and regional economy gather. The author thinks human capital isthe essence of labor division and specialized, and the main source of the economic growthtoo. So the human capital is the main motive force in economy gathers. With the constantdevelopment of the regional economy and the constant change of and the regional industrialstructure, the role in regional economy of human capital is getting stronger and stronger.Meanwhile, the author pays attention to the study on transaction cost.