Spillover Effects Of Human Capital In China 's Provinces On Economic Growth

With the reform and opening- up for 30 years, the comprehensive national strength has been enhanced at the same time. Since the modern market system constantly improved, various fields in the society have moved forward in the steady progress. But the way of touching stone across the river begins to face many bottlenecks. Therefore, we should construct an innovative country, give priority to human capital strategy, and urge the human resource powers into human capital development.Firstly, for laying a theoretical foundation, this paper summarizes the existing literature, and interprets human capital through introducing its concept, accounting, the relationship with economic growth and spatial spillover effect. Secondly, this paper introduces the variables and sample data in detail, and sets a human capital output spillover model based on Lucas human capital and effective labor theory. Considering the influence of spatial location, this paper also sets the space weighted matrix based on high order spatial adjacent standard. Then we use 31 provincial panel data from 1982 to 2011 to analyze the output and spatial spillover effect of human capital and explain the differences in economic development. At last, this paper puts forward some political suggestions.The results show that the main factors affecting economic growth is physical capital, and we’re still in extensive development pattern. There are regional differences in the contribution of human capital to economic growth, and the influence of physical quality obviously lowers than the mental quality. In addition, the human capital and economic growth show spatial agglomeration situation, present a distinctive "core-edge" distribution characteristics, and the spatial positive correlation. Finally, this paper puts forward some political suggestions. Firstly, we should guarantee the educational laws, advocate educational investment and constitute a diversified educational system including compulsory education, on-the-job education, higher education and vocational education. Secondly, we can increase health care spending, and improve the health care system to provide powerful guarantee for the national physical quality. Third ly, we can establish the informational network and sharing mechanism of human capital, fully considering the suitability between human capital and regional factors, and gradually eliminate the distance attenuation effect of knowledgable spillover on the space.