An Empirical Analysis Of Human Capital’s Contribution To The Economic Growth Of Gansu Province

Located in the northwest inland in china, Gansu’s economic development lags behind theeastern and central regions in china relatively. The economic growth in Gansu is mainly relyon investment in physical capital and a large number of simple labor in the long time, whichis no longer suited to the rapid development of the economy. The future economic and socialstructure must be based on knowledge economy, which is, the era of human capital. Therefore,analyzing the current development situation of the human capital in Gansu Province deeply,utilizing the effect of the human capital in Gansu’s economy fully, and improving theefficiency in the use of human capital, advancing the transformation of Gansu economicgrowth pattern in a new perspective and impetus, which is the most important breakthrough inGansu’s economic development.Through using the theories of economics, management, human resources and doingsome practice researches, this paper combines qualitative research and quantitative research,normative research and positive research to designs model and analyzes the data with the helpof Eviews6.0software.According to analyze the data from1997to2011in Gansu Province,This paper discusses the human and material capital’s contribution to Gansu economicdevelopment and the existing problems. And then based on analysis of relevant data from2001to2010, the concept of "fitness" is introduced to analyze the fitness of the human capitalin Gansu province in the use of entropy method.through researching the economic growthmodel, the author analyzes the role of human capital in the economic development in Gansuprovince.The result shows:First of all, the investment structure is irrational in Gansu Province. From1997to2011,the average of the physical capital investment account for GDP reaches56%, the average ofhuman capital investment account for GDP only reaches5.32%. However, the contributionrate of physical capital to economy is86.12%, the contribution rate of human capital toeconomy is12.03%, and the contribution rate of human capital level to economy is only1.85%. The data results show that physical capital is still the most important factors inpromoting the economic growth in Gansu province, but the human capital didn’t play a greatrole in promoting the economic growth.Second, the development of overall fitness degree on Gansu human capital is forward, but there are deviations and fluctuations in the mean value of each fitness degree, the descendingorder of that in respectively is Structure fitness, market fitness and output fitness.On onehand, the industrial layout is irrational in Gansu province, which is still the backward economic structure that the industry and agriculture plays a domination position, on otherhand, the fitness degree of tertiary industry which can promote the great economicdevelopment of is not high. And the human capital isn’t fully effective in tertiary industry.Last,according to the result of model calculation results and suitability analysis, put forward the suggestions of how to excavate potential of human capital in Gansu province,which including increase investment in human capital in Gansu province, especially in the “quality” ofhuman capital; adjust the investment ratio, in order to rationalize the industrial structure; broaden the channels and play the joint effect of universities and enterprises to attract talent; strengthen the construction and innovation on talent market environment.