Empirical Analysis Of Human Capital Contribution To Econmical Growth

Human capital theories from economists like Schultz, Lucas and so on indicate that human capital has been an important element to keep national economy stable and rapid growth. To stimulate growth of human capital is not only for economy development, but also is a big problem which is in relation to national and regional sustainable development. An in-depth study of human capital on the economy growth and to analyze how element in relation to human capital affects economy growth both will have a very important practical significance.This paper applies quantitative and qualitative method to analyze contribution of human capital in Zhejiang, hunan and guizhou provinces to economy growth. At first, based on theories like the human capital and economy growth,human capital and imbalance development of regional economy and so on, this paper forwards empirical model for analysis of relation between human capital and economy growth. Secondly, based on analysis of human capital and economy growth, this paper collects and calculates data like production, human capital stock and so on from 1982 to 2006. According to these data, regression analysis is done and result demonstrates that economy growth in various areas mainly relies on material capital investment. Contribution rate from human capital is poor, but it is better in eastern area than middle area and western area. Human capital has become a key element for economy growth. Human capital investment and stock should be improved so as to contribute to economy growth. Poor area should invest more on human capital to shorten the gap with developed area.