Demonstration Of Human Capital And Economic Growth In Hebei Province

As human being entered the new time, economic growth has been entrusted with the newconnotation. Making the other elements of production produce increasing income, humancapital is regarded as the fountainhead and the main power which impetus sustainableeconomic growth. The western developed country and the newly industrialized countryeconomy development practice has also proven this point. Hebei Province since the reformand open policy, people had realized gradually that the knowledge and the talented person arethe crucial factors of transforming the economical growth way and improving the economicalgrowth quality .Taking Hebei Province as the research object, this article mainly gives the quantitativeinvestigation of the relationship between Hebei human capital and the economic growth.Firstly, the paper summaries the research results of the domestic and foreign relative humancapital and the economic growth theory;Secondly, this article introduces the measurementmodel that are used in quantitative analysis of the human capital and the economic growth;Finally, in terms on the correlative data of reform and opening policy of Hebei Province,using the advanced econometrics method, the paper carries on the correlative analysis, thestable examination, the Grainger-causality test and co-integration test. In this foundation,establishes Error Correction Model(ECM) to estimate long-term and short-term influence,establishes the Hebei Province effective labor model and Lucas model of production functionto calculate the output elasticity with respect to human capital, as well as to calculate thedirect and the indirect contribution rate of human capital to economic growth in 1978-2004year period.