Human Capital Rate Of Contribution In Jiangxi Province And The Inter-provincial Comparison

Jiangxi, a province of hinterland neither coastal nor frontier, is relatively backwardconcerning the development of economy and society. The fact that Jiangxi is of lowhuman capital resulting from its main economic dependence on the input of physicalcapital and labor force as well as the insufficient input of physical capital makes itunrealistic to facilitate its economic development solely through the accumulation ofphysical capital, let alone further narrow down the gap with developed regions. Thispaper will establish a measurement model of the human capital contribution rate ofJiangxi Province on the basis of its fundamental realities and analyze its advantages anddisadvantages of the human capital contribution rate by comparing with other provinces,thus put forward relevant proposals. It’s of great importance and of realistic meaning forthe boost of scientific and economic development, competing for a higher rank andsurpassing the other counterparts and the rising of a green province along with theestablishment of Jiangxi of affluence, harmony and beauty.Firstly, the paper will elaborate on the following three basic theories: theory ofprovincial human capital, theory of economic growth and the functional mechanism ofprovincial human capital on economic growth. The Theories of provincial human capitalconsists of four parts: conception, features, types and measuring criteria. And there’rethree aspects in regard to theories of economic growth: classical economic growth,modern economic growth and other economic growth. As for the functional mechanism ofprovincial human capital on economic growth, it will illustrate from the theories ofproduction function and knowledge effects of human capital.Secondly, the fundamental development situation of human capital in JiangxiProvince between1978and2010is systematically researched from the following fouraspects: human capital quantity, human capital quality, human capital structure, and thehuman capital investment in it. Through the comparison with the corresponding period inother provinces, the differences in human capital between each other are measured. Thispaper also systematically researched the economic growth situation in Jiangxi Provincebetween1978and2010and the differences with other provinces from the two aspects ofgross domestic product and the GDP growth per person. By doing so, the theoretical basishas been laid for the research of human capital contribution rate in Jiangxi Province andthe provincial comparison.Thirdly, the empirical analysis and provincial comparison have been done on thehuman capital contribution rate in Jiangxi Province. During the empirical process, thepanel data between1978and2010has been chosen and the comparison objects arechosen from the26provinces in Chinese mainland with a sound data. In the modelbuilding process, the variable element of industrial structure change has been separated from total factor productivity and the result analysis has been conducted from both theseparable and the inseparable situations. The ridge regression model has been used inorder to avoid the problems of spurious regression and multicollinearity,. By doing so, theresults drawn from this paper are based on a strict econometric theory foundation and allthe test statistics have also shown the rationality of the model built in this paper and thereliability of the results.Lastly, based on the results of the provincial comparison of human capitalcontribution rate in Jiangxi Province, the human capital countermeasures of the economicdevelopment in Jiangxi Province are put forward.