The Impact Of Human Capital On Economic Increase

Regardless of the classical economic theory, the classical economic theory or thenew economical growth theory, nothing is more important than the human capital tothe economic growth in economic factors. Contemporary, the authorities carry out aseries of policy for "central regions rising", Which is the opportunity and challenge forAnhui Province. Whether Anhui economical soaring would be realized under thenational circumstance or not? The author suppose the vital factor is to fully take theadvantage of the rich natural resource and human resource, specially bringing intoplay the lively essential factor—human capital as the indispensable essential. It'spractical and reasonable that we compare the human capital in Anhui with that inZhejiang to demonstrate the difference of the human capital result in the huge gap ofthe two provinces' economic growth. As we know, it are urgent affairs thatdeveloping the Anhui human capital strategy and promoting the economic long-termdevelopment at this stage. Thus, this article has the important practical significancefor Anhui Province.On the basis of authoritative view, the human capital comprises three maincomponents: the general human capital, the specialized human capital and theentrepreneur human capital. According to the different role of the economic increase,the paper lays particular emphasis on studying the specialized human capital and theentrepreneur human capital with using two methods, overseas and domesticeconomical growth theories.It's well know there are three stages, the new classical growth model, theeffective labor model and the human capital externalities model, in the developmenthistory of the economical growth theory which is serviced as the empirical toolmeasuring specialized human capital of Anhui Province and the Zhejiang Provincetogether with the educational stock method. Here Using three models in practicalityconfirms that the level of specialized human capital in Anhui province is lower thanthat in Zhejiang Province. The institutional economics consider "the backwash effect"and "the spreading effect" exist in the difference economic areas. The article summarizes the reason why the human capital is so low and specialized humancapital did not fully exert in Anhui province is millions of human resource spillover,therefore we should release old ideology, respect the talented persons, increase thehuman capital investment, adjust industrial structure and strengthens professionaleducation to improve the level and quantity of specialized human capital in Anhuiprovince.The author reviews briefly the literatures about domestic human capital andeconomical growth, emphatically applies the comparative efficiency about ruralenterprise and the state-owned enterprise by domestic scholars' research. Thecomparative result about the two difference characteristic enterprises displays theentrepreneur human capital play the important role in enterprise and society. Ruralenterprise is the most important measuring enterprise human capital development way,therefore the author chooses the number of rural enterprises as a stock of enterprisehuman capital in one area replacement variables for the empirical analysis, thenmakes the time serial empirical analysis by the data of Anhui and Zhejiang from 1990to 2002, the author finds that the entrepreneur human capital stock and level inZhejiang Province is very wealthier and better than that in Anhui Province. Thesystem economics advanced the difference effect of initiative institutiontransformation and forced institution transformation. According to the theory, theauthor considers the initiative institution transformation impetus the entrepreneurhuman capital development in Zhejiang Province, however, the forced institutiontransformation baffles the entrepreneur human capital forming and development inAnhui Province. Consequently, on the one hand, it is of necessity to transform therole of the government to become the service government. On the other hand, thepeople should transmute from passive acceptor to be initiative participant,simultaneously the government must attract and encourage the entrepreneurs toestablish the enterprises in our province so as to enhance the entrepreneur humancapital storage quantity and level in Anhui Province.