Foreign Trade And Human Capital On The Contribution Of TFP

On the new economic growth theory basis, this article discusses the foreign trade and human capital on the important role of total factor productivity, and does an empirical analysis to the actual situation of our country, and finally draws conclusions and puts forward some policy recommendations.First, this article estimates the human capital stock and total factor productivity of 1997-2007our country and the provinces of our country using years of education law and solow residual method.By comparing the total factor productivity of China's three regions we obtained they are very different, the highest among the eastern region, followed by the central and western minimum. The main differences of three regions are in technological innovation, human capital and institutional change. This paper analyzes the technological innovation and human capital on total factor productivity contribution using cointegration and error correction model.Secondly, this article discusses China's foreign trade situation, as with the dependence on foreign trade were measured indicators of China's foreign trade openness. Then using the 1997-2007 panel data of China's provinces done empirical research on foreign trade and human capital stock and its components the role of total factor productivity.Finally, on the basis of theoretical and empirical research, this article puts forward some policy recommendations to address the main problems of China's economy.