The Empirical Analysis Of Human Capital On Economic Growth In Shanxi Province

The theory of economic growth is an important branch of modern economics. The economic growth is the manifestation of the gross economic development, as well as the significant symbol and process of acquirement of the economic accomplishment. Many factors contribute to the economy development, in which capital, management, technological development and human capital are deemed to be the main and decisive factors for economic growth of a country or region and human capital is the most important factor of economy growth. At present, Shanxi province is in the stage of economic restructure and the growth of Shanxi economy has been influenced by many factors. How to develop national economy rapidly and soundly is an important subject for the government. Therefore, it is significant to research the status of Shanxi human capital and the great role played in the economic development, to find out the problems, to put forward the countermeasures and suggestion to the system of human capital investment.This paper analyzes the status of economic development and human capital investment of Shanxi Province according to China statistics yearbooks, Shanxi Statistics Yearbook and so on. This thesis made a systemic analysis to the status of Shanxi human capital, based on the theory of human capital and economic development, adopting the method of econometric analysis and the research about some relative models. And we analyze the output elasticity and contribution rate of human capital investment through Cobb-Douglas production function on the basis of large number data such as human capital, material capital, GDP from 1988 to 2007. In the end, the cultivation and development strategies of human capital are put forward in hope that it can provide some references for talents' training and tapping decisions of Shanxi Province in future.This paper will be divided into six chapters. Chapter 1 Preface In this part, we propose the research question and introduce the dissertation research goal, the significance, the research technique and the research mentality and the innovation in the paper. Chapter 2 Human capital theory and economic growth theory In this part summarizes for the relevant research theory, reviews the influences of human capital on economic growth and the relevant research theory of economic growth. Chapter 3 Analysis of educations'effect on economic growth. In this part analyses the macro and micro mechanism of educations' effect on economics growth. Chapter 4 In the part, we introduce the human Capital Status and economic of Shanxi province. Chapter 5 In the part, we establish the model of Shanxi human capital and economic growth based on the Cobb-Douglas production function on the basis of large number data such as human capital, material capital, GDP from 1988 to 2007. We can do Linear Regression of the model with EVIEWS3.1 and analyze the total contribution of Shanxi human capital on economic growth and development strategies of human capital are put forward in hope that it can provide some references analyze the Regression result. Finally, it comes to conclusion that human capital has much influence on economic growth in the Shanxi province, but Shanxi's economy growth still occupied in the extension growth pattern which is depend on material capital investment mainly, the human capital didn't play the leading roles in the economy growth. Chapter 6 Policies and suggestions to the human capital policy instruction. In the part, we provide corresponding policies and suggestions to the problems of Shanxi human capital and put forward some valuable suggestion for Shanxi province to develop the higher education, meliorate the educational system and improve the storage quantity and the quality of human capital.