Empirical Analysis On Human Capital In Ningxia's Rural

Robert. Lucas had said: "Once people begin to ponder over the issue(economic growth), it is very difficult for him to contemplate other problems again. No matter from classical or neoclassical or endogenous growth theory, human capital is indispensable and one of the most important resources to economic growth. And the idea that human capital accumulation is decisive to economic growth is more and more rooted in the hearts of the people.This paper is divided into five major parts. Part one mainly Explains the relationship between human capital and economic growth theory: Adam Smith and David Ricardo's classical economic growth theory, Thoreau, Solow and Schultz's neoclassical growth theory, Arrow, Romer and Lucas's endogenous. Part two illuminates the contribution human capital to economic growth in Ningxia from 1985 to 2002. In view of the effective labor model, the contribution rate is 32.68%. As far as human capital external model, one is 18. 45%. At the same time the total contribution of human capital in Ningxia's rural adds up to 36.64%, which is only less than the contribution of physical capital to economic growth. Part three discusses elementary education investment's yielding rate in Ningxia's rural from 1985 to 2002. Increased by one year on the rural elementary education, income elasticity is 0.082.Part four expounds dynamical investment to human capital by the government and peasants. the proportion of science and hygiene expenditure to fiscal revenues and GDP being analyzed, The government constantly increase the expenditure on the popular science and hygiene with the increasing rate greatly fluctuating. But that the government pays more attention to the physical capital's inputs and neglects human capital's inputs to some extent influences the forming of the human capital. More and more rural families realize the importance of the investment on human capital, The investment no matter on education or healthy totally increases year by year. The family would like to make more investment to the human capital, but the amount is influenced by the income. Part five is the summary on the feature of human capital and the strategic choice to improve the stock of human capital in Ningxia' rural To meet the potential and future challenge and solve "three agricultres", the author tries to find some ways in view of human capital to make the economy in Ningxia's rural sustainable, healthy and with fast development.