Regional Economic Growth Disparities In China-Base On Analysis Of Human Capital Theory

With knowledge economy arising and developing rapidly, as the source of technological progress human capital is more and more regarded as the engine of economic growth and hence the crucial factor which explains the divergence in growth rates across counties and regions. But some existing empirical studies show its explanation differently in different counties and regions or at different stages of economic development. An important realistic problem which closely connects to the above is: since 20 century 90s era, along with the rapid growth of China's economy, although the diversity of human capital has been trailed off, the divergence in growth rates across regions in China have been gradually filled out. More and more scholars are focusing on these problems, they try to answer such questions : what factors cause these divergence? How does human capital affect economic growth? How does exert sufficiency effect of human capital.This paper researches into above-mentioned problems by technological approach which comes from human capital, "exogenous effect", "endogenous effect", physical capital to economic growth. Firstly, we insist on both human capital theory and the theory of convergence of economic growth, analyze the relation between human capital accumulation and economic growth. Farther more, analyze the cause of the diversity scale-up across regions in China since 20 century 90s era. And then we study on the impacting mechanism of human capital on economic growth.we make an empirical study that based on theoretical hypothesis which means that the impacting mechanism of human capital on economic growth by "exogenous effect" and "endogenous effect", and also find the stronger simulataneous relation on human capital and physical capital.Finally, we validate this relation. Our main conclusion of this paper are: (1) the development trend of economic growth diversity across regions in China since reform: partly convergence, holistic divergence. Namely, the economic growth diversity become smaller within the east, middle regions and the west, and enlarge between regions, the economic growth diversity between inter-provincial rise slightly since 90 era. (2) since 20 century 90s era. The difference of economic growth in Chinese regions could be mainly contributed to the difference of human capital effects. The effects of human capital to economic growth is bigger in east region than middle and west regions because of the endogenous and exogenous effects. As a result, the regional disparity become bigger. (3) Human capital and physical capital shoulddevelop harmoniously. On one hand, the production of physical product involves not only the input of physical capital but also the input relevant human capital. On the other hand, the increase of human capital attribute to not only the input of itself but also the input of physical capital. The harmonious development of two kind of capital helps to cut down the decreasing of marginal revenue of individual capital. Finally, based on the positive analysis, we put forward the following politic suggestions which intend to push the Chinese economy develop continuously, rapidly and stablely: promoting the level of education, concentrating on the accumulation of human capital, optimizing the investment structure, and accelerating the technological innovation and the system innovation .