Influence Of Human Capital On Economic Growth In The Old Industrial Base In Northeast China

Along with the arrival of the knowledge-based economy, Human capital has been gotten more and more attention, and become the discussional focus in the field of theory horizon. Theodore W. Schultz, a famous economist in the United States, published a paper named "Human Capital" in which he elaborated that human capital was the key factor in the development of economy and ascribed the growing value to human capital investment at the American economic annual conference in 1960. He thought, human resource, knowledge and technology were kinds of capitals which were important among the production resources and the main makers to produce money. Afterwards, lots of domestic and foreign scholars have carried on the various analysis of the human capital's contribution to economic growth. Some of them regarded the human capital as the independent factor and put it into the mathematical model of the economy growth and reached the conclusion by analyzing the economic data in some countries and districts. Their conclusion was that the contribution of human capital to economic growth surpassed that of material capital and would substitute for material capital to become the resource and basic power of economic growth. At present, the old industrial base in northeast China is facing many serious problems of economic environment, such as resource exhaustion, environmental pollution, ecological deterioration and ect. And it is also lack of the power to impel the development of economy and is urgent to seek for the dynamic resource to promote the economic growth. In order to achieve the coordinated development of our society, the government proposes the slogan of revitalizing the old industrial base in northeast China. At the age of knowledge-based economy, human capital is regarded as the internal factor and the "engine" to drive the economic growth. As for the reforming the old industrial base in northeast China, rational exploitation of human capital is the key to realize the sustainable development of economy.Then, what are the influences of human capital on economic growth in the old industrial base in northeast China? How much are the influences? This paper explained the problems in details from the two aspects of theory and empirical analysis.This paper is divided into six parts, with the main themes of each part as follows:The first part is the introduction, mainly introduces the research background, the methodology and the frame of this paper and points out the deficiency of the present literature.The second part summarizes for the relevant research, reviews the research of Marx classical theory about the influences of human capital on economic growth and the research of other economists.The third part construes the special impact of human capital on economic growth in the old industrial base in northeast China, emphasizes the essential effect of human capital on economic growth in the reforming northeast old industrial base prominently. The human capital considered as a necessary production resource is the resource of technology progress and it provides with intelligent support for upgrade industries. Furthermore, it improves the productivity via marginal utility of substitution and spillover effect and thus impetus economic growth quickly.The fourth part introduces the empirical analysis of the influences of human capital on economic growth. Firstly, it presents the methodology to measure the human capital. The methodology can be divided into two catalogues, one is from the aspect of the investment of human capital and the other is from the output of it. Secondly, it explains systematically the present development of human capital and economy in the old industrial base in northeast China. Thirdly, it formalizes a econometric model by using the empirical method which contains the impact of human capital and material capital on economic growth according to Cobb-Douglas production function (the sample from 1995 to 2005, the total output replaced by GDP, the material capital represented by fixed asset investment, the storage quantity of human capital denoted by the educational investment), measures the elasticity of human capital for the total output and the contributive rate of it in Jilin province which deputizes the old industrial base in northeast China by means of an econometric software named EViews and meanwhile compares with that in shanghai, one of the most developed districts in China. Finally, it comes to conclusion that human capital has much influence on economic growth in the old industrial base in northeast China, but has huge gap with that in Shanghai.The fifth part is mainly to analyze the reasons which cause the results of the fourth part. The reasons that lead to the inconspicuous impact of human capital on economic growth in the old industrial base in northeast China include the inadequate educational investment which results in the total human capital low and the power of economic growth insufficient, the unreasonable structure of human capital and the scarce skilled persons, the unsuitable structure between people's knowledge and the demanding which is detriment to update industries, the dislocation of employment structure and the serious problem of brain drain, the severe problem of unemployment and the difficult issue of reemployment which bring on the huge waster of human capital, the immature labor market and the lower free float efficiency of human capital, the bad enterprise environment and the deficient power of independent entrepreneur.The sixth part reaches the conclusion and put forward some proposal to develop the human capital. Nowadays, we can find out that human capital is the most significant element to facilitate the development of economy, so the first and the most magnificent way is to increase the storage quantity of human capital. The old industrial base in northeast China has abundant human resource but little human capital. As a result, the most significant issue is how to transfer the human resource to human capital to accelerate the development of economy in the old -industrial base in northeast China. In recent years, the education in the old industrial base in northeast China has changed a lot. But comparing with the developed districts, for example Shanghai, the educational investment in it is much less. Therefore, the author puts forward some valuable suggestion for the old industrial base in northeast China to develop the education, meliorate the educational system and improve the storage quantity and the quality of human capital and ect.