Research On The Investment Of Human Capital To Promote Industrial Transformation In China

Currently, the human capital investment is one of the important factors that affect economic development. While China is in a period of economic transition and social transformation, industrial transfer is the only way which must be passed. In the era of knowledge economy, human capital investment is an important factor that influences China’s economic development and industrial transfer. Although our human capital stock and standard are continuously improving, the overall level of human capital investment is still low, compared with the rapid development of China’s economy and the process of industrial transfer. In addition, the promotion of industrial transfer exerted by human capital investment is not only related with human capital, but more critical factors include human capital investment structure. Therefore, it has a certain theoretical and practical significance to study the human capital investment of promoting industry transfer to the development of transfer industry.First, in order to analyze the empirical facts of China’s industrial transfer, the paper chooses the GDP of 31 provinces in various industries, and the GDP of each industry during 1991-2012 as well as China’s total population as research indexes. The paper defines industrial transfer index and calculates industrial transfer index of each industry in 31 provinces from 1991 to 2012, using stata software to calculate the average amount, standard deviation, maximum and minimum in 1991-2012 among 31 provinces. Then, select some provinces which represent obvious changes and make index trend chart so as to intuitively analyze the facts of China’s industrial transfer.Second, based on industrial transfer and human capital investment and the theory of their correlation, the essay explores the relationship between industrial transfer and human capital investment, and discusses the relation of the human capital investment and the upgrading of industrial structure in the region. Then the essay elaborates the interaction between human capital investment and industrial structure adjustment between regions. This paper argues that human capital investment can facilitate the process of industrial transfer, but the promotion of industry transfer to human capital investment is less obvious.Finally, in this paper, using related indicators which influences industrial transfer during 1994-2013, the author conducts a panel data analysis on the obvious industrial transfer of 13 provinces and human capital investments. The results show that human capital investment has a role to play in promoting the industry transfer; human capital among various industries are unevenly distributed and thus, industrial transfer process is slow; human capital between the industry configuration is unreasonable, resulting in an imbalance between the industrial structure.According to the study above, this paper presents the human capital investment strategy to promote China’s industry transfer. Firstly, increase the level of human capital investment, mainly to increase investment in education and improve education funding proportion of total government expenditure, so as to promote regional and urban-rural balance of educational resources’ distribution. Secondly, develop higher education to promote the formation of production-teaching-research combination college education system. Meanwhile private education should be supported. Finally, adjust the human capital’s structures on the inter-industry and regional scale, to establish a unified national labor market system and strive to foster multi-layered labor market, guiding the rational flow of human capital and the rational allocation of human resources.