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An Analysis on the Effects to Economic Growth by the Factor of Human Capital in Three Provinces in Northeast China

Author: JiangYu
Tutor: JingYueJun
School: Jilin University
Course: Demographic
Keywords: The three northeastern provinces human capital investment economicgrowth
CLC: F249.27
Type: Master's thesis
Year: 2012
Downloads: 38
Quote: 0
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Abstract


From Reform and opening up since1976to the present, the Chineseeconomy has experienced rapid development. The average annual grossnational product (GDP) growth is maintained at an average of8%abovethe high level comparing with other economies. The driving force behindthe rapid economic development will inevitably bring about a majorproblem, which is, why rapid economic development can be sustained atall and by what? We want discover the reason why Germany and Japancould drive a rapid rise in two decades after World War II, although theymade a big lose during the war. Denmark, Switzerland and the "AsianFour Little Dragons", especially the United States in the1950s, we wantto research and study the "the mystery of modern economic growth”.Thus we found that the driving force behind economic development ofthe modern state has been transferred to the concept of human capital,rather than confined to the reproduction of the materials. Human capitalas a factor of production to a greater extent, determines the potential andfuture of a country’s economic development.The three provinces in Northeastern China plays an important role in theeconomic development process of modern China, has a historic contribution to the founding of the People’s Republic of China. After thereform and opening up policy in1980s, the three provinces made a greatcontribution to support the economic development of the eastern coastalprovinces. However, due to the irrational industrial structure, extensiveconsumption of resources, weak infrastructure and the traditional conceptof development lag in the long-term planned economy, the threeprovinces in Northeast China need economic restructuring, industrialupgrading and economic growth. In this case, the paper examines theimpact of human capital on economic growth within the threenortheastern provinces, and compares the impact of physical capitalfactors on the economic growth. Finally, we obtained the conclusion thathuman capital factors have played a huge role in the economicdevelopment process.This article is divided into five main sections. The first part is theintroduction to the research background of this article, the significanceand research methods and the data source are described. The second partis the theoretical basis of the study, puts forward the theory of humancapital, its theoretical development, and instructions for the economicgrowth model based on human capital theory. The third part is anoverview of the status of human capital and economic growth in thenortheastern region, respectively. The fourth part selects the regressionmodel and sets the parameters, implements quantitative research and analysis on human capital and economic growth of the Northeast.

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CLC: > Economic > Economic planning and management > Labor Economics > Countries in the world of labor economic profile > China > Local labor and economic
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