Human Capital's Accumulation And Endogenous Economic Growth

As China's working-age population reaches its highest point,China's effective labor force will move toward a continuous negative growth trend,which has completely changed the long-term unlimited supply of the country's labor force,or even changed the surplus conditions.The disappearance of the demographic dividend means the weakening of China's traditional source of economic growth,so obviously,maintaining the sustained economic growth requires turning to the accumulation of human capital.This article takes the endogenous economic growth theory as the basic framework,considers the difference in the influence of input factors on growth in different output sectors,makes up for the defects that previous studies only considered the input factors,and improves the BST endogenous growth model of the output two sectors.Specifically,we set the production function of the product and service department,and combined with the actual economic development in China,then added the material capital to the service sector,and by establishing the Hamilton function and the Euler equation,to set the stability of the growth rate of each economic variable on the optimal growth path.Through comparative static analysis,this article analyzes the effect of output elasticity of each input element on the accumulation of human capital and then on economic growth,and proves that human capital is the source of growth for the product and service sector as well as the source of material capital accumulation.On the basis of theoretical research,using the panel data of 15 provinces and cities from the eastern,central and western parts of China,using the ridge regression method to the measure the contribution rate of human capital and material capital to different industries.The results show that compared with human capital,physical capital contributes more to the growth of the secondary industry and tertiary industry.However,the contribution rate of human capital to the growth of various industries is also rising.At the same time,due to the decline in the total labor force,the contribution of human capital stocksfluctuates slightly and decreases a little.Therefore,ensuring the steady increase of the human capital stock by raising the level of human capital is one of the main means to promote endogenous economic growth.Based on this,this article puts forward policy suggestions such as accelerating the upgrading of industrial structure,increasing investment in education,and improving the distribution of incentive mechanisms.