Research On The Disparity Of Regional Economic Growth From The Human Capital Aspect

Recent years, the Chinese government has been trying to reduce the regionaleconomic inequality，the government treat this work as one of the most important aspectsof the building of the harmonious society. However, Under the background of the rapidlytechnological progress, the policies such as fiscal policy the government has implementedcannot achieve the target to promote the economic growth of the backward areas and toreduce the regional economic inequality. In such case, to explore the reasons will be veryuseful for our government to develop reasonable and practical policies of reducing theregional economic disparities. Yet, Most researches now focuses on the direct effect ofhuman capital to economic growth, there are few researches on the way that the humancapital influent the economic growth through the influences on the total factor productivity.Based on the endogenous growth theory and the human capital theory, This thesis aims atinvestigating the direct and indirect function of human capital on reducing the regionaleconomic inequality through Econometrics analysis, and then to provide some policysuggestions on increasing the level of regional human capital.Based on the data grouped by education composition of China’s29provinces，calculated the average level of human capital and the stock of human capital, We find thathuman capital distribution is inequality, which will lead to the regional differences ineconomic development.In the empirical study, we establish an effective labor model included the physicalcapital and human capital as the factors of production, to analyze the direct effect ofhuman capital. The result shows that the physical capital and the human capital aresignificantly positively related to the growth of economic, while, there are significantdifferences of the regional human capital an economic growth.Secondly, we analyze the relationship between the human capital and the total factorproductivity, through the model which uses the total factor productivity as the independentvariable and the level of human capital，foreign direct investment， trade openness andother factors as the dependent variables. We find that the junior and senior human capitalcan both enhance the level of the total factor production, but the effect is of greatdifference. The senior human capital is significantly greater than the junior human capitalwhile other factors are fixed.Finally, according to the result of the empirical study, we provide some suggestions to reduce the regional disparities.