Quantitative Analysis Of Human Capital To Contribute To The Socio-economic Growth

In different stage of economic development, economists choose different factors which had the comparative superiority in the relative economic level as researching object. In the initial process of researching phenomenon of the economic growth, labor force and capital often be considered as major object of research. Until the 1950s, the American economists had been taken the head with Kuznets, found that there had been another factor which can lead to improving of economy besides the amount of labor and capital when they had taken Cobb-Douglas production function by analysing the national income and inputs about America of previous years. That is human capital.Many issues still have not been unanimous conclusion, such as whether the human capital is the primary factor of economic growth also in our country? What role did human capital play in our country's development of economy? and so on. From China's actual conditions, the essay collected data from 1978 to 2005, including gross domestic product (GDP), physical capital stock, the stock of human capital and human capital stock of specialization, cited the Health external production function by the human capital of Lucas and done a series of examinations such as Granger test, ADF (Augmented Dickey-Fuller) test, cointegration test and founding ECM (Error Correction Model) to ensuring coefficient. According to the function and tests, the contributive rate of physical capital stock, the total stock of human capital and professional human capital stock to gross domestic product GDP has been calculated. We calculated that contributive rate of capital to GDP growth is 40.44%, professional stock of human capital's contributive rate to the GDP growth is 28.03%, the total stock of human capital's contributive rate is 13.96% and confirmed human capital is an important factor to promote economic growth in China.