Research On The Effect Of Human Capital On Total Factor Productivity

Over the past 40 years of reform and opening-up policies,China’s economy has grown rapidly,but can it achieve sustained economic growth? What is the driving force for economic growth? The Neo-classic economic growth theory holds that the total factor productivity is the driving force for the long-term sustainable growth of economy,and human capital is the decisive factor affecting total factor productivity growth.Some time ago,the competition for attracting talents was fierce and the "grabbing war" was in full swing,which further explained that cities regard human capital as the engine of future economic growth.Therefore,it is of great theoretical and practical significance to study the impact of human capital on total factor productivity.This article first reviews the relevant theories and calculation methods of total factor productivity and human capital,and analyzes the impact mechanism of human capital on total factor productivity.Secondly,the DEA-Malmquist productivity index is used to measure and descriptively analyze China’s total factor productivity,and analyze the current status of China’s human capital from three perspectives: average human capital calculated by the income method,educational human capital,and migrated human capital.Finally,the panel data of 30 provinces and cities in China from 2000 to 2017 were used to conduct an empirical test on the impact of China ’s average human capital on total factor productivity,and a comparative analysis of regional differences in the east,middle,and west;The impact of elementary human capital,medium human capital,and higher human capital on total factor productivity;and on the basis of educational human capital,migration human capital is added to examine the combined impact of these two forms of human capital on China’s total factor productivity.The main research conclusions of this paper include:(1)China’s total factor productivity showed a downward trend as a whole from 2000 to 2017,and technological progress was the dominant factor affecting the change in total factor productivity.From a regional perspective,the growth trends of total factor productivity in China’s eastern,central,and western regions are basically the same.The total factor productivity growth in the eastern region is significantly higher than the central and western regions and the national average,and the central and western regions are below the national level.(2)Although the level of human capital in China has been greatly improved,the distribution of human capital is uneven,and the situation of high in the east and low in the west appears;(3)The level of human capital has a positive impact on the overall TFP of the country as a whole;There is a significant positive correlation between capital and migrating human capital and total factor productivity.