Study Of The Relationship Between Human Capital And Economic Growth

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, Henan 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, studing the present situation of human capital and its function to the economy growth of Henan 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 Henan Province fast and persist.This paper carries on a system calculation of Henan 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 starts with the related theory of economic growth and the human capital, emphatically analyzes the human capital thought in each time of economy growth theory, and inspects the human capital research condition of domestic, and draws out two economic growth model that take the human capital as a essential factor which would be soon used. Afterwards, this article inspects and compares the economic growth and the human capital quality index of Henan with the other five middle provinces, and obtains the human capital's present situation of Henan Province. Then, this article carries on the modeling that the relations of economic growth with human capital of Henan Province .and obtains the data of 1986 - 2005 HenanProvince'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 yearbook. And obtains the elasticity of various essential factors using least squares method by Eviews software, and compares the contribution of various essential factors, and the conclusion we get is:the main fountain of economic growth of Henan is the material capital, but the human capital delivers the elasticity is bigger than the material capital, so the human capital has the very big potential to the economic growth, and should be the main power of future economic growth of Henan Province. Finally, suggests some advice to develop human capital bitterly, which are rested on the anterior research conclusion.This paper's conclusion is gained according to Henan Province's statistical data using real diagnosis analysis method, and the suggestions act appropriately to the situation. So it has some certain reference value.