Human Capital And Its Contribution To Economic Growth

Economic growth theory is an important branch of Modem Economics, while economic growth is the most important symbol and process of one country's economical success. Economists have been considering economic growth as the most important issue about economics, and countries all of the world are concerned about it, economics' sustaining and steady growth has already been pursued as a goal by the governments.With rapid development of information technology, communication technology, and economic globalization, governments and scholars of all countries in the world are more and more conscious of human capital as the key factor in economic growth. The practice of developed and newly industrialized countries has also shown that investment and accumulation in human capital are important foundation of economic growth.Since 1978, along with the deepening of reform, Tianjin's economy has entered a new stage of rapid growth. From the demonstrated research results on economic growth about Tianjin since 1978, human capital played an important role in its economic growth. The level of human capital in its economic growth had been a significant role in the external and higher output flexibility. However, physical capital was still the main power to drive the economic growth, mainly due to the slow growth of human capital.This dissertation first reviewed the human capital theory and the economic growth theory briefly, and summed up some research results of domestic and foreign scholars. Secondly, using census data in 1982, 1990, 2000 and economic census in 2004, it estimated the overall human capital stock of Tianjin and its distribution in three industries, from which we found that the level of human capital in Tianjin is in a rising stage, but there great differences in three industries, particularly the distribution of high-level human capital was the most uneven. Finally, this dissertation built up a production function model and estimated the contribution rate on human capital to the economic growth. And according to the conclusions above, policy and suggestion about how to promote Tianjin's economic growth was presented from the perspective of human capital.