Study On Provincial Differences And Influencing Factors Of The Human Capital Investment Efficiency In China

With the development of the economy, knowledge, technology and information globalization, the core element of the regional and national economic development is no longer relying on how much material wealth it owns, but it is depending on the level of human capital, the levels of human capital is directly related to the strength of the core competitiveness of the country. As research on human capital investment continues to development, more and more studies have found that in the process of enhancing the level of human capital, we must not only focus on the total amount of the human capital investment, but also to focus on the issue of investment efficiency. So how is the human capital investment efficiency of the different provinces? Which province is having a higher efficiency, which province is having a lower efficiency? How is the efficiency difference among different provinces, and is this difference showing a trend to expand or shrink? What are the factors which lead to the differences between the provincial investment efficiency? How is the directions and magnitude of these factors, does these factors have an spatial spillover effect on the investment efficiency? Answering these questions will be the focus of this thesis. The objective of this thesis is to study:Based on the reviewing of the theory and literature on the investment in human capital, this thesis applicates empirical research methods and comparative analysis methods to the analysis on the efficiency differences investment in human capital among different provinces and its factors from2001to2012. Then analyze the status of human capital investment efficiency provincial differences and its trends, reveal the underlying causes of provincial differences in the efficiency of investment, and propose suggestions on narrowing the gap between provincial differences in the efficiency of investment.In order to achieve the research objectives, this thesis carried out the following studies:(1) Carry an analysis on the the current situation and trends of the human capital investment provincial differences. Through the analysis of the status of human capital investment provincial differences and its trends among the31provinces from2001to2012, we can form the basis on the analysis of the investment efficiency in human capital.(2) Estimate the status of human capital investment efficiency provincial differences and its trends. Based on the building the evaluation index system of human capital investment efficiency, Bootstrap-DEA model and Bootstrap-Malmquist index are carried to estimate the31provinces’investment efficiency from2001to2012, then analyze the status of human capital investment efficiency provincial differences and its trends basing on these estimations.(3) Reveal the reasons on how human capital investment efficiency Provincial Differences arises. Based on building the conventional panel data model and spatial panel data model, this thesis analyzed the influencing factors on the human capital investment efficiency provincial differences, and in the case of considering space factors, this thesis reveals how the influencing factors affect the themselves as well as the neighboring provinces’investment efficiency, then lead to the efficiency provincial differences.By using the theoretical analysis and empirical research methods, the main conclusions of this study are:(1) China’s31provinces have greatly improved the scale of investment in human capital, but the growth trends have significant differences among provinces.(2) Human capital investment efficiency in most provinces is showing significant LH type characteristics, high-tech efficiency provinces are distributing as "S" type in the eastern and central provinces, pure technical efficiency is the main cause of the technical efficiency provincial differences.(3) The efficiency of investment in human capital is improving obviously, but the efficiency provincial differences have gradually expanded in recent years, technological progress is the main cause of the different trends of efficiency provincial differences.(4) Economic development has a significant positive direct effect on human capital investment efficiency, health care and foreign investment are showing significant negative direct effects, differences in the economic development, health levels, foreign investment promote the differences among different provinces in human capital investment efficiency.(5)Provinces with higher levels of education, foreign investment levels and the development of tertiary industry can weaken the neighboring provinces’s investment efficiency and lead to provincial differences become wider and wider.Based on the conclusions above, this thesis proposes the following recommendations:(1) Continue to strengthen the human capital investment, and put more emphasis on expanding the middle and western China’s provinces’investment scale.(2)Promote the technological progress and improve the techniques efficiency by ameliorating the management system of human capital investment.(3) Continue to make the use of economic development’s leading role in the human capital investment efficiency, and enhance the positive effects of the industrial structure adjustment.(4) Strengthen provincial education and health care exchanges and cooperation, established talent "reflux" mechanism, and avoid negative spillover space effects.