A Study Of Shandong’s Human Capital And Economic Growth

To realize the economic stability and growth is one of the government’s main macroeconomic goals. At present, Shandong values the economic development and realizing the sustained and rapid economic growth is a research topic with urgent need. With the technology progress and social change, every province begins to attach great importance to the research on the advantage of human capital gradually. Starting from the situation of Shandong’s human capital, the article wants to explore its relationship with economic growth to find out the existing problems and gives relevant policy suggestions for human capital investment, which promote the sustained and rapid economic growth in Shandong province. It has an important realistic significance.Firstly, we introduce the selected topic background and research significance, explain the overall layout and research methods and put forward the innovation and shortcomings. Secondly, we discuss the connotation of human capital, introduce the effect of human capital on economic growth in theory and review the foreign and domestic research on the relationship between human capital and economic growth. Thirdly, we introduce the overall trend of Shandong’s economic development and study comparatively the situation of Shandong’s per capita GDP and the national per capita GDP, urban residents per capita disposable income and rural residents per capita net income and GDP’s output value of three major industries. Meanwhile, we analyze the current situation of Shandong’s human capital thoroughly and totally from the perspective of the size of population, education development level, education funds, health care and scientific research referring to others’ specific analysis of the human capital situation. Fourthly, it’s emphasized that we use the effective labor model to study the relationship between human capital and economic growth. We measure economic growth with GDP index for the base period of 1990, material capital with perpetual inventory method and human capital with factor analysis method. Fifthly, we make co-integration analysis and contribution analysis of human capital and economic growth with these measured elements. It’s known that the original time series of Shandong’s economic growth, material capital and human capital are not smooth, but the series after first order difference are smooth, so that the three variables are I(1). There is only a single causal relationship between human capital and economic growth; there is not a commutative causal relationship. Economic growth is not Granger cause of human capital, but human capital is the Granger cause of economic growth. There’s a long-term equilibrium relationship between human capital and economic growth, which is maintained by the vector error correction model. The contribution rate of human capital to economic growth is unstable compared with the material capital. Lastly, the paper summarizes the study of the relationship between Shandong’s human capital and economic growth and gives countermeasures and suggestions to improve the contribution of Shandong’s human capital to economic growth through paying attention to the education career and emphasizing the role of talent, attaching great importance to the human capital investment and balancing the material capital investment and promoting human capital migrating orderly and improving the labor market.