An Empirical Study On The Contribution Of Human Capital To Industrial Growth In China

Industrial growth plays an important role in the economic growth. Industrialization is the aim of all of the developing countries, including China. China has had a great achievement in China since 1978, but has not been a country with strong manufacturing. It's human capital that helps to make the transfer. Focusing on education investment and the development of human capital, which is also the demand of situations of our country, is viewed as the experiences of Four Tiger in Asia, as well as Britain, USA, Japan, which have ever been the manufacturing centers of the world. It's the foundation stones of this paper. Several methods have been used to measure how education investment acts on economy. In order to make the analyses easier and clear, Denise's method is simplified, and education investment is used to instead of human capital. Unit-root test,Cointegration test and Granger Causality test are applied to analyze factors of industrial growth by discussing in different periods. The conclusions are Human capital is important to the industrial economy growth in the long time, but not in the short time. Several reasons are demonstrated. In the end, several suggestions are given. First, more labor with high quality should be brought up, which can help industry up grading and structure adjusting as well as the development of research department. Second, more skillful labor of high education level should be trained, which can change the burden of population into the advantage of labor. Third, the quality of rural labor should be improved, and rural industrialization should be accelerated.