| Title |
An Empirical Analysis on the Relationship between Human Capital and Western Economic Growth in China |
| Author |
Weijiang Lu, Xiaowo Tang |
| Contact Information |
School of Management
University of Electronic Science & Technology of China |
| Key words |
human capital, economic growth, Lucas Model, Western region of China |
| Abstract |
The western development is one of the vital steps for China to solve the regional unbalanced development problems. Studies used to be centered on national and eastern regions in China , and concluded that the technological progress have been mainly achieved in the eastern regions of China . This paper focuses on what sources of the western economic growth and is taking Sichuan Province (an important province located in the west of China ) as an example to analyze the state of human capital from 1981 to 2003.
The results show that with the rapid increasing of investment on human capital, it contributes significantly to the economic growth in Sichuan Province . With the improvement of the human capital level, the growth if total factor productivity (TFP) has been playing a positive role in GDP growth after setting up socialist market-oriented reforms, while it was negative before then. Though there do exist some gaps in economic development compared with developed areas in the east of China, human capital and TFP growth remain the important sources of economic growth for western regions, and will be more and more important. Then it's suggested that in order to narrow the gap and to catch up eastern regions of China , it's a must to have sustainable investment on human capital to increase enterprises' ability of learning and innovation. |
| Full-text |
Contact: Dr.Obeidat at mobeidat@spsu.edu , or lsun@spsu.edu |
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