The Empirical Research On The Human Capital And The Regional Economic Development Imbalances

Since the Reform and Open up, Chinese economy has made unprecedented achievement, with economic growth rate around 9% per year. One thing worthy to notice is this development is imbalanced among different districts. Along with the rapid development of the economy, the culture and medical are also improved, which further stimulated the development of economy. Among all the factors having impact on economic development, human capital is the core of economic growth which plays an important role in China’s economic development. In this paper, I did certain empirical study on the relationship between the human capital and regional economic development imbalances.Based on of human capital and economic growth theory from both domestic and foreign scholars, this paper first studies the functioning mechanism of economic development and human capital, and the relationship I find is they are mutual promotion to each other. Then I analyze the government input on education and health and point out the deficiencies on the investment of human capital in regional economic development. According to the level of human capital, this paper uses the Cluster Analysis to classify the 31 provinces of China into three groups. Theil Entropy method shows there are great disparities in the economic indexes among these three groups. The GLS regression shows human capital has a Threshold effect on the economics development, which affects the knowledge spillovers in the backward areas and leads to wider economic disparities. Finally, the paper puts forward policy recommendations about how to use human capital properly for economic development and for the reduction of regional economic disparities.