Regional Human Capital Externalities And Inter-regional Dissemination Of Research

Whether a nation is able to develop depends on its human capital. China has rocketed up, thanks to the wise action that we fully made use of the rich human capital in the past 30 years. However, the general human capital stock that could be easily utilized covered the function of the human capital quality to the economy development. In a long time in the past, China invests comparatively low in R&D and education, which prevented the quality improvement of the mega people.The reason why China has an insufficient investment in R&D and education is that we have an incomplete realization of the mechanism of the human capital to the economy development. It is not quite right to keep the idea that with more labor force input can we get more benefit. In effect, the function mechanism of human capital to the economic output is very complex. It not just includes the simple direct function(With more labor force comes more benefit), but also contains a large amount of indirect function, the human capital function to each other between different regions. We can conclude all these function as human capital externality. The main aim is to clarify the function mechanism of the human capital, to make the people clear that how the human capital effects the economy within a region, with the intention of posing some ideas on macro human capital disposition among regions in China for reference.Shihe Fu concluded the human capital by 4 aspects: the human capital education and skill level, the industrial human capital conglomeration effect, the industrial human capital diversity, the industrial human capital density. Starting from these 4 aspects, we first analyzed the human capital characteristics in China, from which we found the gap of the human capital quality between different regions is large. Then we had an in-depth analysis of the disperse of Beijing and Shanghai human capital externality. Basing on these, we had a quantity analysis of the human capital externality within the region and out of the region. From the result, we found that inner and outer human capital externality tend to substitute each other within a region. Then we analyzed Beijing and Shanghai human capital externality's disperse to other regions, that is the "Outer Regional Human Capital Externality". From the analysis, we found the Beijing and Shanghai human capital externality to other region is impairing as the distance from Beijing/Shanghai to the region increases.With the intention of clarifying the factor that determines human capital externality, we first concluded the human capital characteristics by using the approach of factor analysis. We get to know the determining effects of the human capital characteristics and other system and conception factors to the inner and outer human capital externality. Basing on these, we point out that it's necessary to deal with the relationship of inner and outer human capital externality correctly. We should embark on developing feature industry and comparatively advantageous industry. We should fully make use of human capital Conglomeration Effect, value science and technology innovation, increase the investment in education, science and technology, to fully make use of the positive externality of human capital to the economic development.