The Comparative Research On The Effects Of Human Capital On Economic Growth Disparity

The research on the disparity of economic growth has strong reference value to our country as it appears and develops fast between different regions. All being in the Huabei area, Beijing, Tianjin, Shanxi and Neimenggu are cultural and regional related, and each has different features in resources and industry foundations. The dependence and aggregation on each other make it unique advantages for regional economic corporation. Huge difference occurred during the thirty years of reform and open policy. As an important one among all the factors that have influence on the economic growth, what role it plays in the economic growth disparity is the focus of the study.This paper first introduces the human capital thoughts in the economic growth theory, and the economic growth models related to the human capital input. Then take Beijing, Tianjin, Shanxi, Neimenggu as samples to compare the current situation and differences in economic growth, physical capital and human capital. The effective labor input model and the model of human capital externality and are selected for the empirical study. After the regression analysis using the data from 1978 to 2007, the output elasticity of the factors in four provinces/cities are discussed. Contributions made by human capital in each area are further analyzed. Results from different models are compared and feasible suggestions are provided.The main conclusions of this paper are:(1)The relationship between GDP and input factors has the feature of Cobb-Dauglas production function. Human capital has a deep relationship to the economy and it has a significantly external effect on non-human capital factors.(2)The main drive of economic growth in all provinces/cities is physical capital, which has higher elasticity than human capital. As time goes by, the elasticity of human capital goes bigger gradually, which means its stimulation on economics become more obvious. The reliance on physical capital among the four areas make a higher to lower sequence as Beijing, Tianjin, Shanxi, Neimenggu, while the reliance on human capital goes the opposite.(3)As for factor contribution, physical capital is still higher than human capital. Beijing and Tianjin have physical capital contribution goes lower and human capital contribution goes higher during developing progress, while Shanxi and Neimenggu are the opposite. Comparing the effective labor input model and the model of human capital externality, the primary difference is that the former one has higher physical capital and lower human capital contribution than the latter one, which dues to the externality of human capital.Based on the conclusions above, the essay sum up several reasons to explain those differences in education investment, on-the-job training, and human capital transfer point of view. Finally, advices are given according to that to sustainable economics growth.