Analysis On The Role Of Human Capital Investment In Economic Development In Xinjiang

The economic practice of the Western countries have borne out the importance of the human capital investment as the driving mechanism of economic increase and the researches in China in the same field confirm that it is of equal importance to the underdeveloped countries and areas. Taking Xinjiang Province for example, the paper analyses measures that can he taken in the development of human capital investment and economic increase.Education is an important mode for human capital investment and improving the quality of human capital. In this paper, the production function is used to analyze and compare the contribution and output elasticity of human capital investment and physical capital to economic increase in Xinjiang. By applying econometric method, the paper shows that investment in human capital and physical capital both have remarkable effect on economc increase,but output elasticity of physical capital investment is bigger than that of human capital investment.