Human Capital And Economic Growth

Today’s human society has stepped into the21st century, economic globalization, human capital accumulation and technical progress of economic growth has becomean important endogenous variables in the macro backdrop, to some extent, determine the economic trends. However, since the reform and opening up, with the economic rise of China, the economic disparities between the provinces domain is also widening, which are a prominent issue on China’s overall economic development and social stability. Therefore, by comparing the situation of human capital and economic development in Jiangsu and Anhui provinces, analysis of the human capital of the study provinces how to better play the role of promoting economic, and that the relevant policy advice to reduce regional economic disparities.This paper first outlines the background, purpose and significance of the thesis, put forward the paper to study the problem. The second chapter reviews the research of human capital and economic growth from both domestic and foreign. Given in Chapter III of the related concept of human capital, to review the classical theory of human capital and economic growth. In the fourth chapter details the respective economic development of Jiangsu and Anhui provinces and human capital position. Chapter in theory and practice on the basis of a sample of Jiangsu, Anhui, two science cultural province and most populated province, the establishment of the provinces of human capital on economic growth model of effective labor and human capital externality correction model, and then physical capital and human capital, time series data in the years1978-2010these two provinces, the use of Eviews6.0software for quantitative analysis, come to Jiangsu’s economic growth was mainly driven by investment in physical capital.Human capital does not play its due role in promoting economic growth. Anhui Province’s economic growth was mainly driven rely on investment in physical capital, but into the1990s Anhui Province, the total factor productivity contribution to economic growth is greater than the contribution of Jiangsu Province, but its human capital to economic growth the contribution is also below the expected standards.Still increase investment in basic education in the two provinces, and strive to improve the quality of human capital, development of relevant incentive policies and systems, and promote the rational flow of human capital, to make it more effective to play a role in promoting the economy should. Focus on the advantages industries, and improve the provinces ability to attract human capital, forming a virtuous circle of effective utilization of industrial development and human capital. Anhui Province should focus on the development of rural human capital market, and training efforts to strengthen the professional skills of rural human capital, enhance human capital in rural areas the ability to adapt to the market economy.