The Impact Of Human Capital Agglomeration On Regional Industrial Upgrading

While the international market competition is becoming increasingly fierce, China’s economy has entered a period of New Normal. Various circles of society begin to discuss how to promote the transformation and upgrading. Meanwhile, economic agglomeration is becoming a common phenomenon, including the human capital. So the paper explored the relationship between human capital agglomeration and regional industrial upgrading. Firstly, the paper analyzed the spatial distribution of human capital in China’s provinces and cities, got the following two findings: Idiosyncratic human capital is centralized in Beijing, Shanghai and Tianjin, less distributed in the southwest region; but the gap between provinces is to be narrow. Homogeneous human capital is the main component of labor in China, the relative distribution in China is balanced, but the absolute quantity is larger in east region. Secondly, from the views of enterprises’ performance and industrial structure, the paper analyzed the influence of human capital agglomeration on regional industrial upgrading using the panel data of prefecture-level cities, through the fixed effect model, and got the following three findings:The human capital agglomeration in an enterprise can improve its level of upgrading, its operating profit ratio will increase 2.9% when the human capital agglomeration increases 1%; The human capital agglomeration out of an enterprise has a negative effect on its upgrading,. The influence of different kinds of human capital agglomeration is different, homogeneous human capital has no influence on the upgrading, while the idiosyncratic human capital has the positive effect.