Research On The Impact Of Human Capital Investment On Chinese Residents’ Consumption

Consumption demand has been the largest contribution to economic growth. Therefore, consumption growth plays a very important role to achieve the macroeconomic goal to promote economic growth. With the continuous improvement of the society on the importance of human capital, investment in human capital is increasing and the proportion of the expenditure on education and health care spending in the total expenditure of the consumers. Human capital investment has become a new as well as more and more important kind of investment. High human capital can enhance residents’ consumer confidence and improve their expectations for their permanent income, thereby increasing their consumption. But too much investment on human capital may be beyond residents’ consumption ability and influence other types of consumption, which can led to a decline of consumption in the overall level.In this case, it is necessary to consider the impact of increased investment in human capital to other consumption of the residents.This article made a summary and review of the existing literature and information and analyzed the current status of relevant research which made a solid foundation for the following research. This article is based on the relevant data of Chinese residents to study on the impact of the human capital investment on the consumption of Chinese residents through theoretical analysis and empirical test. Firstly, the paper analyzed the theoretical mechanism of human capital investment influencing the residents’consumption. Secondly, it made a statistically description of the change and status quo of human capital investment and residents’ consumption. Then it made an empirical analysis on this question through panel data model and got some conclusions. In the end of the paper, it put forward appropriate policy recommendations according to the results.