Empirical Study Of The Relationship Between Jiangsu Province's Human Capital Investment And Ecnomic Growth

Since the reformation and opening of China, the speed of economic growth is prominent. And all of the world pay much attention to China's Progress. The theory of western new-economic growth and the theory of human capital have proved that the human capital is the basic factor of economic growth in western developed country and newly industrialization country, and the investment and accumulation of human capital is the base of the sustainable economic growth. The economic level and human capital level of Jiangsu Province is higher than most provinces of china. Study of the problem about the relationship between human capital investment and economic growth is meaningful to Jiangsu's economic growth,and will be meaningful to other provinces.The article is divided into five chapters,the first chapter is guiding which bring forward the research issue and methods;the second chapter is the theory of human capital investment,including the theories of human capital and human capital investment;the third chapter is situation analysis which includes human capital investment situation and economic growth situation;the forth chapter is empirical analysis which study the relationship of human capital investment and economic growth;the fifth chapter is conclusions and policy suggestions.The part of empirical analysis is composite of two parts:the first part test the cointegration relationship and Granger Causality relationship;the second part I choose efficiency-work model and human capital outside model measure the contribution of human capitl investment.The result shows:(1)There is cointegration relationship between them,education investment is the cause of economic growth,but economic growth is not the cause of education investment.(2)In 1991 to 2005,the rapit economic growth is mainly caused by capital investment,the contribution of human capital investment is obviously low,but the human the effect of enhancing economy of capital investment is greater than capital investment.So on one hand,education investment is meaningful to economy, and on the other hand much more economic growth is invest to capital,not to education,we shoud increase the education investment and the eighth of education investment in economy.The excess growth way of Jiangsu Province is a kind of low output and high investment model, to change the way and make technology progress and human capital investment be the main factor of economic growth,we need to increase human capital investment to enhance human capital level and technology progress.