An Empirical Study Of Human Capital And Economic Growth In Henan Province

Henan is the most populous province. There are many contradictions and problems in the process of economic growth, but it is ultimately the "Teople's" problem. With the deepening of the research on economic growth theory, economists found that human capital have an increasingly important role in economic growth, especially with the development of science and technology. Although Henan province have a lot of population, human capital investment is insufficient because of the limitations of education, health care and other conditions. And ultimately the human capital stock and human capital level are on the low side so that seriously restrict the development of the economy in Henan.Firstly, the article reviews the development of human capital theory, describes the latest research results of foreign and domestic scholars'research on the human capital theory after reform and opening up.Then, the article introduces the current situation of human capital of Henan Province; Secondly, it cites C—D production function which after distorted we get the human capital externality model. Using the model, we have empirical analysis on the relationship between human capital of Henan and economic growth; Again, measure the variables of human capital externalities:real output, stock of physical capital, stock of human capital, human capital level.We test the correlation of the variables in the model variables.Then we find all the variables of the model meet a test. The regression model can reflect relationship between the human capital and economic growth very well.We obtain the Specific human capital externality model through empirical test and estimate out the contribution of physical capital stock to economic growth, human capital stock to economic growth and human capital level to economic growth. Comparing to the contribution of Henan province, Shandong province and Guangdong province, we find problems in the economic growth process of Henan province; Finally, we put forward strategies on promoting the development of human capital stock and human capital level of Henan province and then we put forward strategies on promoting economic growth.