Sustainable Development Of Human Capital Investment

As a newly rising subject or sub-subject, there exists so much imperfection in human capital economics, say, imperfect theories, positive researches and some puzzles to be solved. It is a particular necessity for us to make further researches, especially in a country with large population of poor quality. Domestic studies on human capital, intermingled with western theories, is not only messed but also disordered. The paper aims at absorbing the good but abandoning the bad, to some degree, to make great contributions to the progress of the theory. Meanwhile, the author tries to make use of it to analyze and explain some economy phenomena that happened in practices. The paper first probed in the nature of human capital by research into the traditional economic theories and its extension, then drew conclusions from the domestic and international human capital theories. The author made the foundation of it with two aspects, from several points of view, such as, the extension, property right, deployment and the characteristics of investment to study human capital theory. The author gave an accurate definition of human capital by summing-up the categories, approaches of investment, the basic factors, the characteristics and fashions of allocation of human capital. In chapter two, the author brought human capital investment into the frame of sustainable development. With the premises that completely understood the basic meanings of sustainable development, the writer defined the notion of human capital investment of sustainable development and put great emphasis onto the relationship of both. At the same time, the researcher realized that the core of sustainable development is actually the full development of human being. Due to the significance of human capital in sustainable development, the writer could persist in the methods of human capital investment by introducing two kinds of investment approaches, say, the inner inspiration and the exterior investment to increase accumulation. Then the author introduced three famous human capital incentive theories, such as Abraham 'Maslow'sW, 3 !tt2000hierarchy of needs theory, Herzberg's motivation-hygiene theory and Skinner's reinforcement theory etc, incentive methods, such as annual payment system and stock equity system, the primary investment methods, such as, education investment, training investment, work force flow investment, health-care investment, learn and work investment and the social interaction investment etc. The author followed the previous conclusion that human capital was very crucial to the economic growth and connected it with the practices to form the model that human capital investment greatly influenced the economic growth. Then the writer respectively adopted educational expenditure and fixed number of years of received education to demonstrate that the average education years of whole labor force is vital to the economic growth. At the same time, according to the present condition of human capital, the author detailly analyzed the trend of increasing speed and elasticity of education expenditure. The author drew a conclusion that since 1978, China education expenditure had been slower than the growth of gross domestic product and quicker than the growth of national finance expenditure and average gross national product. The author proposed the government to take measures to increase the accumulation of human capital and education investment. In the last chapter, the author analyzed the handicaps that the government must face in mid and long term development of human capital investment, including the predicament, structure contradictions and the root of systems etc. The author suggested that the government should undertake sustainable development strategy of human capital investment. The author thought we should push forward the structure rationalization, promoted system innovation of property right and made full use of government support to strengthen and perfect finance countermeasure of human cap...