Investment In Human Capital Of Gansu Province And Economic Growth Empirical Study

Economic growth is the core of modern economics of one of the issues, is one of the topics people are most concerned about. In the new theory of economic growth, human capital is the important factor to promote sustained, rapid and stable growth. Human capital investment is to increase the human capital stock, thereby affecting an important means of economic growth. In recent years, Gansu Province investment in expenditure for education increased year by year, indicating that investment in human capital of Gansu Government's emphasis on the increase. Therefore, examining the relationship between investment in human capital of Gansu Province and economic growth has important practical significance.This paper is divided into five chapters, the first chapter is an introduction, proposed research background and research methods; The second chapter is the concept of human capital investment and related definitions, introduction of human capital and human capital investment of some relevant theories; The third chapter is Gansu Province of human capital, human capital investment and economic development status. Analysis of the current major investment in human capital of Gansu Province and the economic development situation; The fourth chapter is human capital of Gansu Province and economic growth empirical analysis; The fifth chapter is some policy recommendations of investment in human capital of Gansu Province based on empirical results.Empirical analysis consists of three parts:The first part is the selection of mode, mainly introduced the effective labor model and the model of human capital externalities and comparative analysis of the reasons for the two models chosen. The second part is data collection, including Gansu GDP and fixed asset investment over the years, these two sets of data from "Statistical Yearbook of Gansu", after conversion by actual prices in 1990.The stock of human capital over the years and the average level of human capital, as these two sets of data can not be obtained directly from the statistics, so this paper technical estimate those sets of data by 1990,1995,2000,2005 census year and 1% sample survey data. The third part is to do regression analysis of historical data were obtained in the estimated coefficients of the two models. The production function of effective working model of Gansu Province as: Yt=3.196Kt0.640Ht0.213; and the production function of human capital externalities model as:Yt,= A(t)Kt0.695Ht0.305ht0.240. The fourth part is a brief summary of model results:Gansu economic growth is mainly driven by investment in physical capital; human capital contribution to economic growth is significantly lower; increased investment in human capital role in promoting economic growth is greater than that generated by increased investment in physical capital role.On one hand, investment in education on economic growth has important significance. On the other hand a large number of Gansu Province's economic income used in the physical capital investment for a small proportion of investment in education. This indicates that economic growth of Gansu Province is still in extensive growth phase. Need to increase investment in education and improve investment in education in the proportion of the total economy. Accelerate the development of education, maintain and retain talented people in the province and attract talented people outside the province to promote the economy from extensive to intensive changes in Gansu Province is the new way of future economic growth.