The Research On The Effect And Countermeasure Of Human Capital To The Formation Of Regional Economic Disparities

Since the reform and opening, china’s economic develops rapidly and makes remarkableachievements. However, with the rapidly growing of economic, there is a growing gulf betweenregions. In recent years, the gap has narrowed in some areas, but the gulf between urban and ruralis still enormous, the problem of developing economy in poor area is still unsolved. In2011, theratio of per capita GDP between west, middle and west area was2.01:1.10:1, the ratio of per capitadisposable income in urban and per capita net income in rural was3.13:1. The incoordination ofregional development will ultimately affect the improvements of people’s living standards and thespeed and quality of economic growth. It is of little usage to search for the reason and takemeasures from the aspect of physical capital stock. We believe it is useful to discuss China’sregional economic disparities from the human capital perspective.Firstly, we measure the level of human capital according to years of education, focused on thestatus of the uneven distribution of human capital in inter-regional status. The results show that,same with the economy inequality between regions, the gulf between west and east areas is thelargest on the level of the stock of human capital, while the midland is the most balanced area.There is a huge difference of human capital between urban and rural areas, the uneven level ofhuman capital in rural areas within the inter-province were significantly higher than that in urbanareas. Moreover, according to the decomposability of the Theil index, this paper also calculates thecontribution ratio of human capital regional differences to the overall difference. The results showthat the difference of human capital between China’s three zones, urban and rural areas wassignificantly greater than those provinces within the region, which constitutes the main source ofhuman capital differences in China.What’s more, the distribution of education within provinces calculated by education Ginicoefficient shows, the statues of uneven distribution of education is general among western regionprovinces, particularly in Qinghai and Gansu. The educational inequality in eastern provinces is thesmallest, and the midland is nearing the eastern region. By calculating the human capital stock andeducation Gini coefficient indicates that there is a large negative correlation between them. So weconsider that devoting to the distribution of poor area education is good for the promotion of thelevel of human capital stock and beneficial for the economic inequalities between regions. we analyze the status of China’s regional economic differences. We found that the developgap between China’s east, middle and west area is still large. Although economic inequalitiesbetween the eastern provinces is significantly more than the middle and west areas, it tends to bebalanced in recent years. The income inequalities between urban and rural residents have alwaysbeen different since the21century. Therefore, our research shows that the economic inequalities inChina mainly come from the regions. Then depending on the data of29provinces from2001to2011, we check the role of human capital in economic growth of the whole country and westernregion by random effects model with time effect. The results showed that the stock of humancapital and physical capital have a significant impact on economic growth, especially the humancapital. So the regional difference of human capital becomes the vital factor of the economic gap.