Entrepreneurial Human Capital And Regional Economic Growth Differences

Since the reform and opening up policy, due to the stratergy of unbalancedregional economic development, economic growth in different regions showed greatdifferences. It was found that in the process of reform and opening up, the place whichis attractive to entrepreneurs and where economic growth is faster is the region whoseentrepreneurial environment is better and where the gap between the rich and the pooris smaller. This shows that the entrepreneurial environment and its Entrepreneurialhuman capital situation are important factors to cause the differences of regionaleconomic growth in China, and this is precisely neglected by many domestic scholars.Therefore this article will study the influence of Entrepreneurial human capital onregional economic growth differences on the basis of previous research.This paper will study the issue from two aspects. First of all, as in previousstudies of Chinese regional economic growth conditional convergence problemscholars did not consider the factor of Entrepreneurial human capital, this paper willstudy the influence of Entrepreneurial human capital on regional economic growthconditional convergence. Secondly, regions at different stages of economicdevelopment、the formation of entrepreneurship and Entrepreneurial human capitalaccumulation, whether the influence of Entrepreneurial human capital on regionaleconomic growth will show a threshold characteristic is a problem which theoreticalstudy neglected. Therefore this article will also examine whether a thresholdcharacteristic of the influence of Entrepreneurial human capital on regional economicgrowth exist.The first chapter of the article is the introduction, which introduces thebackground and significance of research、literature review、the framework and methods of the research as well as the innovation and insufficiency of the study. In the secondchapter, this paper introduces the theoretical content of the concept、characteristics andmeasurement of Entrepreneurial human capital. The third chapter is the theoreticalanalysis and research hypothesis of Entrepreneurial human capital and regionaleconomic growth differences. In this part, this paper firstly analyses the role ofEntrepreneurial human capital on regional economic growth in the micro and macrolevel. Secondly discusses the threshold effect of Entrepreneurial human capital onregional economic growth.The fourth chapter is the empirical study of Entrepreneurial human capital andregional economic growth differences. The relativity between the Entrepreneurialhuman capital and the differences of regional economic growth is firstly examined byusing Dynamic panel model with the panel data of29provinces in China from1992to2007. Different from other empirical study in this area, the paper introducesinstitutional variables affecting the Entrepreneurial human capital works into theempirical model, and uses Panel Threshold Model for the first time to verify thethreshold effect of the Entrepreneurial human capital on regional economic growth.The empirical result shows that after controlling other factors, the Entrepreneurialhuman capital has significant positive impact on regional economic growth, and affectsthe conditional convergence of regional economic growth. The dynamic level ofregional GDP per capita development will cause the influence of Entrepreneurialhuman capital endowment on regional economic growth show a thresholdcharacteristic; under the common function of the positive feedback、self-reinforcingmechanism and the demonstration effect, entrepreneur accumulation effect also cancause the nonlinear relationship between Entrepreneurial human capital endowmentand regional economic growth with obvious threshold effect.The fifth chapter is to give the conclusion and policy recommendations. Thisarticle firstly summarizes the conclusions of the empirical study, on this basis, putsforward the corresponding policy recommendations from the perspective of enterprise、government and finance policy three aspects. This paper mainly recommends thatenterprises should pay attention to the definition and protection of Entrepreneurialhuman capital, perfect equity incentive policy; the government should improve the material and spiritual incentive mechanism for entrepreneurs, strengthen theconstruction of the related institutional environment; at the same time, the governmentshould increase the financial subsidies、tax incentives and other aspects of support. Webelieve that through these measures, Entrepreneurial human capital will continue tomake new contributions to the development of regional economy.