Research On Human Capital Investment In The West Region Of China

Currently, regional difference is a significant characteristic of economic development in our country. The West region of China possesses more than half land of our country, and has abundant natural resources. But compared to the east region of China, the economy of the west of China region is extremely backward and living standards of the people is low. This West-East gap in economy is slowing down the economic development of our country and social progress.Seen from a rather macroscopic perspective, the thesis deals with the present situation and prospect of human capital of the west region of China, investigates the relationship between human capital investment and economic development of the west region of China by means of comparative analysis, and reveals the backward of human capital is one of the reasons causing the stagnation of economy in this region, and improvement of human capital is of important significance for regional economic development.First, the attention is concentrated on current situation of human capital in the west region of China, which consists of human capital quality, human capital structure and subject of human capital investment. And then it identifies problems in improvement of human capital in this region, such as poor health, lack of education and human resources, insufficiency of fund and institutions for improvement of human capital.Second, the thesis discusses the human capital stagnation in the west region of China from several aspects, including traditional culture, regional economic peculiarities, educational level, natural environment, and government policy. The study shows the backward of human capital has long term negative impact on economic development, and indicates the influence of vocational training system and the government policy to the development of human capital. The thesis further shows the inherent mechanism between human capital and economic growth and the function of human capital to the economic growth, which shows the human capitals not only contribute to the economic growth directly but bring about the technology progress.The thesis finally suggests possible improvements of human capital in the west region of China, including industrial structure improvement, education policy adjustment and education system innovation, and advises that increasing human capital and giving more government support to local education department would have great significance to improvement of human capital.As mentioned above, this thesis demonstrates that improvement of human capital has a positive effect on economic growth. Based on the above theory, according to the current situation of local human resources, the thesis reveals the significant role of human capital in economic growth in the west region of China and raises some suggestions on improvement of human capital in this region.