Qingdao City, Human Capital And Economic Growth Empirical Analysis

The human capital theory and the economical development practice prove that the human capital has the pivotal function in the process of the economy growth. In order to research the role which Qingdao human capital plays in its economical development, and to promote Qingdao economy development, this paper has utilized the quantitative and qualitative analysis, the contrast analysis, the linearity returns and other econometrics methods. First, it calculates the labor force participation rates, the human capital level and the human capital storage quantity of Qingdao between the period of 1980～2005, and then uses the human capital exterior model to do the demonstration analysis of the the role that the human capital plays in the development of Qingdao city.The result indicates that: Firstly, the labor force participation rate in Qingdao has an observably correlative relationship with the economic growth. The labor force participation rate delivers the elasticity is -0.10. it means that cannikin domino effect has happened. If the labor force participation rate can be optimized, the ecnomy will growth quickly and Qingdao's GDP will change 0.10 percentage points. During 1980～2005 year, the labor force participation rate of Qingdao city was increasing, but its growth did not promote the economical growth.Secondly, in the process of the economic growth between the period of 1980- 2005, the human capital has the remarkable promote action to the economical growth of Qingdao. Among of them, the average contribution rate of the human capital quantity to the economic growth is 13.80%. The average contribution rate to the economic growth (1990-2005) of the exterior effect that human capital on other factors is 17.22%. From the contrast analysis between Qingdao and Suzhou's economic growth, we can see that the role that the human capital level and the human capital storage play in the development of Qingdao city has a big excavation potential. At the same time, the average contribution rate of the human capital quantity to the economic growth is lower than its material capital to the economic growth (reach as high as 69.98% on average).Obviously, the human capital is not a sufficiency but an essential condition to the economy grows. Therefore, Qingdao should attach importance to both human capital and material capital.Lastly, this paper provides some suggestion that Qingdao should optimize the labor force participation rate and enhance the human capital level and the human capital storage quantity in order to promote the long-term stable development of economic.