Research On The Relationship Between Human Capital And Economic Growth In China

The theory of human capital has been attracting lots of scholars' attention all of the world since it was brought forth by Theodore · W · Schultz, a professor of America, in the 1960s. With society and economy developing, more and more importance of human capital has been understood by people and some economists had brought the human capital being regarded as an independent factor into the math formula on economic growth, as a result, a new theory of economic growth had been established. Conclusions that human capital can promote more powerfully economic growth than fixed capital and human capital will become a radical driving engine taking the place of fixed capital for economic growth had been put forward by some researchers after analyzing economic data from some countries or regions. The success of German and Japan put a vivid demonstration to the whole world and it proved once again that human capital does accelerate social and economic development of a country until it's prosperous at the same time.Based on the theories of human capital and economic growth, the mutual effects between human capital and economic growth in China and some factors blocking exertion of the useful effects of human capital to economic growth has been analyzed firstly in this dissertation in theory. And the relation between human capital and economic growth in China has been proof-tested positivistically based on some Chinese economic data to test whether human capital is a driving factor to economic growth and to check up how many the proportation that human capital contributed to Chinese economic growth is in real life.Because most scholars in the past just used a kind of measures of price-making of human capital to calculate the human capital in China and then analyzed the data by the measure of regression simply, they got different results. To avoid these shortages and to check up whether the results are consistent, two kinds of measures of price-making of human capital are adopted in the process of test. The Co-integration is used in the dissertation to test all collected time serieses for fear that the spurious regression appeared caused by the measure of simple regression.According to the theoretic and positivistical analyses above, some main conclusions are put forwards: human capital can promote economic growth in China chronically; there are some factors blocking the exertion of the useful effects of human capital to economic growth; economic growth can accelerate human capital development; the nowaday economic growth is caused by the investment of fixed capital and the style of economic growth in China is the investment-drived style; the Chinese human capital couldn't advance economic growth obviously in the timebeing but it's bettering; the useful effects caused by fixed capital will weaken and the ones caused by human capital will boost up gradually in the future Chinese economic development in the long run.Some pertinent suggestions are brought forward so that human capital can exert the proper effects in the end of dissertation.