Capital And Labor Impact Of China's Economic Growth Research

After 30 years of reform and opening up,especially since the 1990s,Chinese economy has kept a stable and high growing-up speed.But after 2008,a financial crisis swept over the world and the economy of the world became stagnancy.As one of the most important parts of the world, China can't prevent the crisis from spreading.The economy and the inflow of foreign capital decline fast.At the same time,the export suffers a heavy blow and employment becomes a big question.How to keep a stable speed of economic growth and a full employment become the most interest topic of government,scholar and common people.The empirical research shows that capital and labor are two basic factors of economic growth.While capital could be divided into domestic capital and foreign capital,and labor could be described from quantity and quality.So, does the domestic capital influence the economic growth as the foreign capital does? Which one is more important to the economic growth,the quantity of labor or the quality of labor? The thesis wants to answer these questions to provide suggestion for the government.Based on the summarization of previous research,the thesis gives a systematical analysis upon the development of China's capital and labor.After that,the thesis establishes a economic growth model including domestic capital,foreign capital,quantity of labor and quality of labor and conducts an in-depth empirical study through related data between the year of 1990 and 2007 of our country.The empirical research shows that domestic capital,foreign capital,quantity of labor and quality of labor all have a positive influence to the economic growth.But there are some differences.The influence of foreign capital to the economical growth is a little greater than that of domestic capital,while the influence of the quality of labor is much greater than that of the quantity of labor.Based on the analysis,the thesis considers that there is no good or bad between domestic capital and foreign capital and we should provide a fair,stable and harmonious environment for them.In now situation,we should master the relationship between domestic capital,foreign capital and economic growth,and increase the input of domestic capital within measure.At the same time,through more education investment and more occupation training,we could improve the quality of labor to promote the economic growth and increase the employment.