Research On The Relationship Between Human Capital And Growth Of The Regional Economy In Henan Province

China’s economy has experienced rapid growth in the decades after the emergence of thephenomenon of declining growth. Originally rely on large-scale investment and export-driveneconomic growth model has been questioned, as an important part of the regional economyChina’s Henan Province, is also facing the same problem. In the process of economic developmentin Henan Province, the physical capital investment has long been ignored, and the investment inhuman capital has not been given due attention. Many scholars have long demonstrated asignificant role in human capital investment on regional economic growth, some of them use acertain type of econometric accurately measure the role of human capital in regional economicgrowth. Their research proved to increase investment in human capital, will greatly promoteregional economic growth.Studies of human capital, confirmed the important role of human capital in economic growth.Scholars research tells us that the development of regional economy, not only pay attention toinvestment in physical capital, but also attach importance to investment in human capital. For thepurposes of regional economic development, increasing investment in physical capital is certainlyan effective way, but the benefits of this approach are reduced. Especially after a large number ofphysical capital accumulation, increasing investment in physical capital is no longer so clearly andeffectively, the economic benefits of physical capital decreased significantly. In contrast, forhuman capital, this does not reduce the accumulation of human capital in economic benefits, butincreased economic efficiency of human capital. This is because the marginal rate of return ofhuman capital is increasing, rather than decreasing as human capital, which determines the characteristics of the great significance of human capital investment. Also, the role of humancapital for economic growth in the region is very obvious, many scholars study confirms this.Development of regional economy, we should fully take into account the enormous impact ofhuman capital investment for regional economic growth, the focus on physical capital investmentwhile increasing investment in human capital. Economic development in Henan Province ofcentral China for the smooth realization of a lot of sense, so we should pay attention to economicdevelopment in Henan Province, Henan Province, the economy can ensure rapid development. Inthe process of rapid economic growth in Henan Province, should pay attention to the importantrole of human capital, increase investment in human capital. This is achieved by way of theaccumulation of human capital of Henan Province, Henan Province, to improve human capital,human capital play a greater role in economic growth in Henan Province.With respect to the physical capital, human capital has a unique advantage. First, themarginal benefit of human capital showing marginal increment phenomenon, its economicbenefits will not be reduced with the increase in investment. The second has a strong humancapital externalities, can be combined with other factors to promote economic development. Third,investment in human capital has a long-term, so ask when we should focus on long-terminvestment in human capital perseverance.Henan Zhongyuan Economic Zone as the core area of the industries to relocate to achieveeconomic growth in the middle of playing an important role. The driving force behind economicdevelopment in Henan Province, the estimates of the contribution of the various elements ofeconomic growth in Henan Province, Henan Province on strategic decisions in terms of economicgrowth in a high reference value. Human capital metrics than one, there are main ingredients Law, Investment Law and theaverage of the closing years of education law. Given the availability of data and other factors,using the average years of education law is of great benefit. In this way, the study measure thehuman capital of Henan Province in1996-2012stock. After that, the paper established a humancapital measurement model, the extent of the contribution of human capital of Henan’s economicgrowth will be estimated. The regression results show that for Henan, increasing the human capitalof Henan Province1%economic growth will lead to2.692%.Finally, in order to achieve better and faster regional economic development in HenanProvince, Henan should pay attention to investment in human capital, increasing the role of humancapital in economic growth. The first is the increasing investment in education, especially highereducation investment. Second, encourage enterprises to conduct in-service training for staff.Furthermore, the improvement of health conditions, protect the health of the population. Inaddition, the need to establish a mechanism for the introduction of talent, improve talentdevelopment environment to attract and retain qualified personnel.