The Empirical Analysis Of The Relationship Between Human Capital And Area Economy Growth

With the advance of society and technology, achieving sustainable economic growth has increasingly become the people’s needs; it is also a prerequisite for the prosperity of the Chinese nation. However, to realize the sustained economic growth and build a modern environmental friendly economy, one cannot ignore the important role of the way economic development boosts. Currently knowledge has become the determinant of sustained economic success; human capital and technology are the main factors contributing to the economic growth which are beneficial to the transformation of economic development mode. Jiangsu, Zhejiang and Shanghai form the Yangtze River Delta economic zone, taking up more than20%of the total economic output. Since the Reform and Opening up, these three provinces gradually change their economic development mode, focusing more and more on developing human capital accumulation and technology advancement.This paper reviews literatures on human capital and economy growth, summarizes the main theories and models, and examines the relationship between human capital and economy growth empirically in the three regions. Further, comparisons have been made on the role of human capital, physical capital and labor in economy growth. Policy suggestions have been made in the hope of contributing to the real economic growth.