Demonstration Of Human Capital And Economic Growth In HuNan Province

That the human capital is the most important attributition to the economic growth, and human capital investment such as education and training is the fountain of an country economy to continues to grow for a long time, were believed by The new economic growth theory .At present, Hunan Province is being at the economy launching phase. so it's an urgent topic needs to study that how to realize the economy growth fast and persist. Therefore, studying the present situation of human capital and its function to the economy growth of Hunan Province, and discovers the question existed, then suggests some advices to enhance the human capital's contribution, has very important practical meaning to promote the economy growth of Hunan Province fast and persist.This paper carries on a system calculation of Hunan Province's human capital, and analysis how much does the matter capital, the human capital and the entire essential factor contribute to the economy growth demonstrationly, using the measurement economic analysis method and the dynamic analysis method and the correlation model study method and the related theory of the human capital and the economy growth. Then attempts to discover the degree of the human capital's contribution to the economic growth and its intrinsic change rule and suggest some advice to use human capital betterly.This paper draws out two economic growth model that take the human capital as a essential factor which would be soon used. Afterwards, this article focus on the human capital's present situation of Hunan Province. Then, this article carries on the modeling that the relations of economic growth with human capital of Hunan Province .and obtains the data of 1978—2007 Hunan Province's economic growth, the material capital investment and the human capital investment and the human capital quality, according to GDP, the fixed asset investment and the human capital data of the statistical year book. And obtains the elasticity of various essential factors using least squares method by Eviews software, and compares the contribution of various essential factors. The conclusion is that nearly thirty years we get the main fountain of economic growth of Hunan is the material capital, but the human capital delivers the elasticity is bigger than the material capital. Human capital as the most positive factor in economic growth will undoubtedly play an even more important role in economic growth. Finally, suggests some advice to develop human capital betterly, which are rested on the paper's conclusion. According to Hunan Province's statistical data using real diagnosis analysis method, and the suggestions act appropriately to the situation. So it has some certain reference value.