The Research Of Human Capital Investment Problems Of Shan Dong Province

Human capital plays an important function in regional economic development with the continuous development of regional economic. This paper is concentrate on the researching about the relationship between regional human capital investment and economic development. First reviewed the research results of the human capital on the development history of west economy, attempt to do a more overall survey to the development of the human capital theory. This paper combine the characteristic of regional economic development of ShanDong province, choose the representative theory model and relevant economic variable to quantitative analyses the relationship between human capital investment and regional economic development through the regression model. This research attempt to combine theory analyses with empirical research, discussion the issue which focus on the relationship between human capital investment and regional economic growth, offer references for regional economic development decision.This paper researched and discussed the issue between human capital investment and regional economic development through the example of ShanDong province, thus try to get a conclusion which benefit ShanDong province's as well as China's economic development and economic improvement, find out the elements that affect the increment of economy and their devotion to the economic, analysed the relationship between human capital investment and economic development, foretell the situation of ShanDong's economic increment under the support of human capital investment. Finally try to find out the best way of improve the quantity and quality of human capital from more deep level, and to come to the conclusion of the policy and advises of human capital investment that can promote economic development.The arrangement of this article as follows:First part is the proposition of the questions, summarizes of the human capital research, meanings and ways as well as thoughts of this papers research. At last to post that human capital is the main driven force in modern economic development.Second part introduced the basic theory and model of human capital investment. From the concept of human capital, this part researched the characteristic and ways of human investment. Human investment model mainly Lucas (1988) about human classical model and education earning ratio model of Mincer (1974) to the contribution rate of economic growth of capital investment. To concluded that all elements have their functions in promoting regional economic development.Following part toke ShanDong's economic development as an example to analysis. Choose relevant time series data and economic indicators, quantitative analysed the effects of human capital investment to regional economic development.Next part put forward the importance and relevant measures that can improve human capital thus promote regional economic development; introduced the importance from education investment, human structure and investment structure. In policy recommendation and theoretical directions, this paper try to change the situations that disfavor ShanDong's economic develop continuous and healthy, to improve the overall human capital level in ShanDong province, and finally find out the ways of economic that has Shandong characteristic.The last part is the conclusion and expectation. Foresaw human capital and R&D capital will improve quickly, thus increase the devotion of technology advancement to economic development, and to change the ways of economic development from extension type to connotation type, finally to realize the continuous and steady increase of economy and step into knowledge economy society.