Empirical Analysis Of Human Capital And Economic Growth In Shanxi Province

Economic stability and growth, full employment, price stability and balance of payments are the main macro-economic goals of each government, of the four economic growth is the most important.Since the implement of the reform and open policy, high speed of economic growth has been maintained in china. Form the point of the development of regional economic, a larger difference gradually develops between the east and west of china. Although developed potentially, compared with other provinces in eastern, the development of economic is not satisfying in ShanXi. It has been proved by the western new economic growth and human capital theory that human capital has played an important role in the long-term and continual economic growth of countries.Based on the effective labor model, the paper analyses the effect of the human capital to the economic growth in Shanxi by choosing data of human capital and material capital between 1990 and 2006.At first, the paper introduces the research results of the human capital theory, and gives a comprehensive narration to the relationship of the human capital theory and economic growth theory, which established the theory premise and the basis of this paper.Secondly, with educational year law, the paper checked and calculated the human capital from 1990 to 2006 in Shanxi, then compared the situation of human capital levels in shanxi and that in other provinces in the country. At the same time, the paper estimated the contribution rate of human capital, material capital as well as total-factor productivity to the economic growth by empirical method, Moreover, from the point of interior configuration, role of the environment, inspiring mechanism and accumulating mechanism of human capital, the reasons for the low contribution rate of human capital to economic in Shanxi are analyzed in this paper.Finally, according to the above theory and empirical analysis results, the paper presents the suggestions on how to take advantage of the human capital to achieve a sustainable, health, rapid economic growth in Shanxi.