Human Capital And Regional Economic Growth

The research achievements of Schultz and Lucas demonstrated that human capital is a necessary factor which related to promoting national economy increasing continually and stably. Increasing human capital investment is not only a need of economic development of our country but also the more important thing concerned the sustainable economic development of our country and some provinces. Both Shanxi and Gansu are developing regions in west of our country which contain a huge population resources but a deficient human capital storages and material capital storage. Therefore, author carries on a studies between capital inventment in these two provinces and ecnomic growth has a important practical significance.This paper is divided into five chapters, the first chapter is an introduction which proposed background of this paper; The second chapter is a introduction of some human capital theory and difinitions related to human capital; The third chapter is to show these two province present situation between human capital investment and economic development; The fourth chapter is empirical analysis part also the core of this paper, The result of OLS will tell us the true relation between human capital investment and economic development and the answer of "what it is";The last chapter is some recommendations of human capital policy which based on analysis of the fourth chapter. In this part, author selects effective labor model and collects the data about human capital,material capital and GDP of these two Province in 1990-2009, and then carry on multiple regression analysis. We can get output elasticity of human capital and material capital from the result What is more,we get the rates that human capital and material capital contribute to economic growth. The results show that economic growth of these two provinces is mainly driven by material capital, but the situation of Shanxi is better than Gansu totally. Therefore, we should increase investment in education, maintain and attract more and more talented people to promote economic growth in these two province, finally promote economy from extensive growth to intensive growth.