Human Resource Investment Social Transition And Economic Growth

This dissertation explore the relationship between investment on human capital, social transition which is regarded as the evolution from the traditional society with crude technology and productivity to the modern society with rich technology and productivity and economic growth, and the effect of investment on human capital, especially on education ,on the social transition and economic growth. The purpose of this research is two fold. The fist is how the selection of everyone's education, procreation, and production determines the type of the society. The second is education on what conditions can drive the technology and economic growth and social transition.As regard as the first question, the answer can indicates as follows. There have some complex trade-offs in social transitions. In a traditional autarky society, the people produce simple goods which can be produced without school education and bring up their children with a low cost. Meanwhile in a modern society of division of labor, people cooperate with others which bring about transaction costs, produce complex goods which must receive school education but with a high return and bring up their children with a high cost. There also be some workers .When trading efficiency improves, and the return of education is comparatively large, many phenomena including the decline of the rate of population birth, economic growth, the percentage of urban population rise emerge from the evolution of division of labor. We formalize this Friedman's idea about the feedback between social transition, investment on human capital and economic growth with a general equilibrium model. It is proved that the birth rate is uncertain when it goes with economic growth. We also develop an econometric model whose data come from the time series of china from 1953 to 2005 and analysis it with the method of FGLS and chow test. It is proved that technology progress induced by education and R&D and the progress of transaction efficiency bring about the decline of population and economic growth. But the effect of birth control policy is not evident.As the second question, we point out that Workers select education to improve their human capital in future, firms select R&D to improve their technology in future. It is proved that there is a positive feedback relationship. The economy will take off unless it has a large amount of investment on education and R&D. OLS and Granger estimate are given to research the above empirical implications with Chinese data and policy suggestions are also given. The econometric study indicates that the role of education on R&D is not evident but the role of R&D on education is comparatively evident. Finally, we use the reform of china's university education as an example to show the great role of education on economic growth.