An Empirical Study On The Relationship Between Human Capital And Economic Growth In Shaanxi Province

With the develop of economy and society progress,economic growth theory becomes more scientific and abundant.The new economic growth theory recognized that human capital and material capital are main factors of economic growth,Especially in recent years,the role of human factor is increasingly important with scientific and technological improvement.Human capital is the endogenous factor of a country or region’s economic growth.Shaanxi province is the portal in the western area of our country,as the core of political、economical、cultural center of mid-west area of our country. It has comparative advantage in growth of economy, but Shaanxi province lags behind other provinces because of shortage of natural resources、stock of human capital and its lower utilization. This paper uses qualitative analysis and quantitative analysis method to discuss human capital’s role and allocation of Shaanxi province’s economy growth,so that we can come up with some tactical reference from the angle of human capital for further development.First, theory foundation.Through extensive access to reference,this paper make an overall explanation of economic growth theory、human capital theory、material capital theory, including the presentation of these theory, various capital accounting methods and the latest research. The theory above supply basis and premise of empirical research.Second, theoretical model and variables’ statistics and measurement. In this paper, Cobb-Douglas production function amended is chosen as the mathematical model to research the interaction relationship and function way among economy growth,human capital and material capital. Get data from statistical yearbook, annual statistical reports and other authoritative sources, and converse them to actual value according to the price index.It’s important to note that 2008 is the defined base period.this paper make an descriptive statistics on economic development of Shaanxi province, human capital investment and material capital investment. For human capital, this paper analyses the level of investment from three dimensions: education funds investment, scientific research and medical resources investment, using the previous research on human capital investment. Then using the perpetual inventory method to account the stock of education capital and scientific research capital of every city in Shaanxi province respectively; For physical capital, this paper carry out a statistical analysis about the present situation of physical capital investment, then take perpetual inventory method which is international generally recognized by the international researchers to measure fixed capital measurement of cities in Shaanxi province. So obtain economy, material capital and human capital stock of Shaanxi province and it’s cities from 2009-2014.Thereafter, empirical analysis. First do Stationary Test and Cointegration Test.Then introduces the FE model briefly, and use Stata Econometric software to study the relationship between economic growth、human capital and material capital empirically, getting the factors affect the economic growth of Shaanxi province and the size of its effect. Further,this paper put forward its conclusion.Finally, based on the research conclusion, this paper put forward several policy suggestions to promote the development of human capital and realize the “new normal” of Shaanxi province.