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Fixed capital and human capital inputs and economic growth

Author(s): Qinghua Wang

Multiple studies proved that human capital and economic growth deeply related. In China, many scholars have discussed the positive relation between human capital and economic growth, however, few scholars emphasized on the effect of unbalanced distribution of human capital on economic growth. The unbalanced human capital caused inequality economic growth in difference provinces. Based on this situation, this paper is using MRW as the fundamental theory model to research and analyze how fixed capital and human capital influence the provincial economic growth in China through nonparametric estimation of fixed effects panel data method based on the statistics of 31 provinces from 2001 to 2010. The conclusion provides some suggestions to make the human capital harmoniously develop which also benefit for overall economic growth in the country.

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