Research On The Effect Of Agricultural Labor Force Transfer And The Sustainability Of China's Economic Growth

The purpose of this paper is to study the effect of agricultural labor force transfer and the human capital on the economic growth. For this purpose, the paper studies this issue from both theoretical and empirical aspects.On the theory, this paper establishes an endogenous economic growth model under a dual economic structure. The basic idea of the paper is that with the economic development, people's demand for agricultural products growing small and the demand for industrial products increasing, by the agricultural sector technology advancing, after meeting people's basic demand for agricultural products, labor will inevitably continue to shift from the traditional sector to modern sector, which is also necessary for modern sector development, because modern sector's development needs constantly joining the workforce, so as to avoid the marginal capital of diminishing returns, on the other hand, the transfer of labor for the workforce as a productive factor not only increase the number of workforce, but also for the quality of human capital, therefore, this model introduces human capital factor.Under the basis research of Chen Zongsheng and Li Defu, taking account into the truth that the technological progress of the agricultural sector comes from the capital investment of the modern sector and self-improvement, the model replace the agricultural function of technological progress by "learning by doing " form, while modern sector introduce human capital in the production function. In this model, we discuss the effect of the labor force transfer and the human capital on economic growth, come to the conclusion that: When the two sectors'growth rate of productivity are not same, capital and labor between the two sectors will be in transfer and the transfer promoting economic growth, while the growth of human capital ensures sustained economic growth.On the empirical analysis, we use China's economic status date and VAR model especially the use of impulse response function discuss the relation between the various variables, come to the conclusion that the transfer of labor has made important contributions to China's economic growth, but China's current economic growth mode is still extensive, and the transfer of agricultural labor mainly increases the number of labor inputs and promotes economic growth, is a short-term effect and that human capital for economic growth is long-term impact of sustained economic growth. It's necessary to enhance human capital to sustain economic growth.Through this article we have two results that the agricultural labor force transfer can promote economic growth and it is essential to further reform the restrictions on the labor force transfer and to achieve sustained economic growth must rely on enhancing the level of human capital.