The Mechanism Of Contribution Of Human Capital To City Competitiveness And An Empirical Study

With the rapid development of the global economy, the competitiveness among cities becomes increasing fiercely. Researching on human capital investment in city competitiveness is of great theoretical and practical significance. This article was on the basic of city competitiveness and human capital theory, and made use of the influence system of city competitiveness by human capital investment as the main line, and by establishing of the correlative analysis framework and theoretical model, it launched empirical analysis from different levels, consequently, verified the interrelationship and interaction mechanism between human capital and city competitiveness, and according to which the policy and recommendations were advanced.First, with the beginning of the characteristic of human capital formation, four factors affecting human capital formation were confirmed:namely, education, train, health and transference. The author creatively proposed the concept of human capital lifecycle, and discussed the effects on the formations of it taken by the four major factors affecting human capital at different phases. Secondly, on the basis of researching on and analyzing various models of city competitiveness, the model in which human capital take effect on city competitiveness was established. In this model, internal relations of human capital with technological innovation, enterprise development and industrial structure was systematically constructed, and according to which structure equation modeling of studying on the relationship between human capital and city competitiveness was built. In the empirical studies,267cities which are at the municipal level were selected as the study samples and relevant dates were gathered and put in LISREL8.7 software for structural equation model fitting. In the studies, the value of T in nine of the 10 hypothetical and the fully standard parameters met the requirements estimated, and assumes have been verified. The empirical study results showed that:urban human capital has an important impact on city competitiveness by taking effect on science and technological innovation, enterprise development, while, the role of human capital making use of the urban infrastructure to influence city competitiveness is not significant. Then, the dynamic relationship between human capital investment and urban competitiveness was carried out for an empirical research. Taking Xi'an for a study object, the time series relationship between human capital investment and city competitiveness from 1975 to 2005 has been validated. First, making use of cointegration analysis is to discuss the long-term stability relationship and the short-term relationship between the two, further by Granger causality test inspected the causal relationship between the two. Empirical studies show that:human capital investment take a very small short-term impact on city competitiveness, while, the long-term impact which human capital investment takes on city competitiveness is more significant. Thus, there is the existence of a long-term and stable proportion relationship between city competitiveness and human capital;and there is a clear interaction, namely, human capital investment can promote the improvement of city competitiveness and rapid economic development of urban will also make human capital speed up. The relationship between the two is a co-promoted growth of mutual relations.Finally, from four different points of view of human capital, institutional arrangements and proposals about city human capital investment were advanced. First, making urban community sanitary services do well need construct good medical treatment and carry out health and foundational education issues; Second, enhancing the constructing of education system is mainly about basic education and junior education, including financing for education by multiple channels, and supporting private education actively.Third, enhance human capital's employment training and occupation training, especially enhance the training on special human capital and government management human capital. Fourth, It should fully show the effect of the market and intermediary socialist service, clear out the system obstacles of human capital transference, and create the loosely environment where high level human capital flows.In this paper, the research results will help deepen studying on city competitiveness; also has made new explorations of the applications of human capital theory in the practice of economic and management.