The Measurement Analysis Of The Relationship Between Human Capital And Economic Growth Of China

Sustained economic growth is the main objective of national economicdevelopment, and the fundamental driving force of economic development istechnological progress, human capital is a supporter and promoter of technologicalprogress, the impact of human capital as a factor of economic growth by increasingpeople’s attention. Western new economic growth theory and human capital theory hasproven that human capital accumulation and investment in human capital is animportant basis of sustained economic growth. This paper attempts to study the realrole and significance of human capital in our economic growth.The first introduced in is paper is the related research on human capital andeconomic growth, then this paper defined the concept of human capital, on the basis ofwhich is an analysis of nature of human capital. And outlined the human capital theorythat is related with economic growth theory and the important models, it has laid thefoundation for the relationship for he analysis of human capital and economic growthin China.Contributions of the human capital of different levels of education to economicgrowth is not always the same. In order to analyze educational attainment of humancapital in China’s economic growth, the paper use the latest technologies in moderneconometric theory, such as the unit root analysis, co-integration theory, vector errorcorrection models. Granger causation test, variance decomposition and so on, use themethod of dynamic analysis to explore their long-term balance between the relationsand their contribution, and reach the conclusion.Human capital allocation is in line with the development rules and therequirements of the development of economy, The direct impact on the human capitalallocation is efficiency of economy. this paper consider human capital accumulation toChina’s economic impact and, at the same time, consider human capital allocation tothe influence of China’s economic growth. Human capital industry from China,regional differences are analyzed respectively on economic growth in China, andconcludes that the different effects of the accord with China’s economic growth rulepolicy Suggestions.