Human Capital, Industrial Structure Transformation And Economic Growth

Human capital is one of the major determinants of economic growth.However,the present study ignores a fact to a certain extent,human capital can not only directly influence economic growth,but also indirectly influence economic growth by promoting the transformation of industrial structure.In this context,this paper attempts to study the impact of human capital and industrial structure on economic growth,and the indirect influence of human capital through the promotion of industrial structure to high-tech and high knowledge industries,that is,the influence of the matching degree between the level of human capital and the speed of industrial structure transformation on the economy.First of all,this paper analyzes the present situation and the general trend of economic growth,human capital and industrial structure of China's regional,the result shows that the gap between the economic growth levels has a tendency to widen among the provinces in China.And the level of human capital gap is large between different regions in China,although there is convergence trend,the gap between the most value is more than 2 times.And the transformation of industrial structure between different provinces(cities)is also unbalanced.The employment of high tech and high knowledge industries in some provinces(cities)is relatively small,which is not enough to promote local economic growth.Secondly,from the empirical study,the impact of human capital and industrial structure on economic growth is analyzed.This paper selects the panel data of China's 31 provinces from 2003 to 2015,and makes an empirical analysis of the whole and different levels of economic development.The analysis is based on Lucas' s economic growth model,and uses extended Cobb Douglas function to construct econometric models.The empirical process is divided into two steps,the first step is to verify the impact of the human capital and industrial structure on economic growth.The result shows that : In the overall level,the human capital and the transformation of industrial structure will promote economic growth.From non holistic level,no matter the degree of economic development,human capital has a positive role in promoting economic growth.And the higher the level of economic development,the greater the role of human capital.In the undeveloped and middle area,the transformation of industrial structure has a negative correlation with economic growth,and the effect in the underdeveloped region is not significant.For the more developed area,there is a positive correlation between industrial structure transformation and economic growth.It shows that the transformation of industrial structure requires human capital as the basis,and they need to coordinate with each other.The low level of human capital or the rapid transformation of industrial structure will inhibit economic growth.The second step adds the interaction item to the model,and makes an empirical analysis of the whole and different levels of economic development,the results show that: In the overall level,the change of the human capital,industrial structure and interaction will promote economic growth,and the impact coefficient of the matching degree on economic growth is bigger,indicating that we should pay attention to the matching degree between development of human capital and industrial structure change speed in the process of economic development.From non holistic level,there is a positive effect between human capital and economic effect,a negative correlation between industrial structure and the interaction and economic growth for undeveloped area of our country.The above shows that the level of human capital is low,and it is not enough to support the transformation of industry into hightech and high knowledge industries in this region.At this stage,the region should focus on improving the level of human capital.For the middle area,the human capital and the interaction has a positive effect on economic growth.However,speed up the transformation of industrial structure will hinder economic growth.This indicates that the level of human capital is more match the speed of structural change in those regions at the present stage.Therefore,we should pay attention to the matching between the two factors while improving the level of human capital in the future.For the more developed area,to improve the level of human capital and the speed of industrial transformation will promote economic growth,and to improve the matching degree between the two elements will bring greater economic growth in those regions.This suggests that the two factors have a good matching degree in this region,and we can further adjust the matching degree between them on this basis,which provides good conditions for long-term stable development of economy.Finally,the government and enterprises should increase the investment of human capital,optimizing human capital structure,make orderly industrial structure transformation to adapt to the level of human capital development,promote a virtuous cycle of human capital and to optimize the industrial structure of the region,seize the opportunity of the times of the new economy and drive the development of innovation.