Research On The Measurement Of Human Capital’s Contribution To Economic Growth In Pan-Pearl River Delta Region

The Pan-Pearl River Delta is an economic region, including Guangdong, Fujian,Hunan, Jiangxi, Guangxi, Hainan, Sichuan, Guizhou, Yunnan and nine provinces(autonomous regions) and two Special Administrative Regions which are Hong Kongand Macau. Because of its diversity and differences, which exist in different provinces,it provides a favorable foundation to the mutual benefit and cooperation in thePan-Pearl River Delta. As the most extensive coverage of the economic regions inChina, the Pan-Pearl River Delta plays a key role in the national regional economicareas. In the modern economy, human capital has more significant impact on localeconomic growth, and various input factors, including human capital, make hugecontribution to the economic growth of the Pan-Pearl River Delta. This articlemeasures the contribution rate, which the human capital of different provinces in thePan-Pearl River Delta influence the regional economic growth, in order to providesome specific theoretical references and policy recommendations for the coordinateddevelopment of the Pan-Pearl River Delta.Based on the theory of modern economics, the paper investigate the problem thatthe contribution rate,which the human capital of the Pan-Pearl River Delta impact thelocal economic growth, with the combination of theoretical and empirical analysis.First, the article build an interactive model which can explain the interaction betweenhuman capital and economic growth. Then, the paper describes the status of thehuman capital and economic growth, using the descriptive and statistical analysis.Following that, the paper build an econometric model to estimate the human capitalcontribution rate to the economic growth with the data which is from the Pan-PearlRiver Delta region provinces.This study has concluded the following three points:(1) education, humancapital and economic growth have interaction mechanisms within each other;(2)within the Pan-Pearl River Delta region, there is a big difference in the everyindicators of economic development and human capital among different provinces.According to the sort of per capita GDP standardization, nine provinces will bedivided into three echelons, and it will show the following trend, that the firstechelon is more than the second echelon and the third echelon is the worst about thelevel of economic development;(3) From the empirical results, we can conclude that the contribution rate to the economic growth of physical capital is much largerthan the human capital’s, and it is not fully realized. In the first tier, human capital ofGuangdong and Fujian provinces make more contribution to economic growth rate;the contribution rate is different in five provinces of the second tier; the contributionrate of Yunnan and Guizhou province in the third echelon are higher than someprovinces in the second tier.The innovation of this paper mainly exist the following, the Pan-Pearl RiverDelta region is the most diverse and internal differential economic region of China.According to the standardized index of per capita GDP of nine provinces,it is dividedinto three echelons. Based on human capital economic growth model, this articleestimates of the contribution rate of human capital on economic growth by using therelevant data of the Pan-Pearl River Delta region, and the conclusion it makes will bean important references to the education, human capital and economic developmentfor areas.