A Study of the Dynamic Relationship between Physical Capital,Human Capital and Economic Growth——Based on the 1978-2009 Data Analysis in China

Modern economic growth theories display that human capital and physical capital both have an important influence on economic growth.With inventory method and years of education calculation method of the physical capital stock and human capital stock,using cointegration and Granger causality test respectively,this article studies the relationship between human capital,physical capital and economic growth and then builds vector auto regression(VAR) model and error correction(VEC) model.What's more,it studies the long-term dynamics correlation between human capital,physical capital and economic growth by using impulse response functions and variance decomposition method.The analysis results showed that there is a long-term cointegration relationship between physical capital,human capital and GDP;in the short term economic growth depends a lot on investment in physical capital,but human capital contribution is relatively small;in the long run,the contribution of human capital to economic growth remains significant.Therefore,we should balance the physical capital and human capital investment ratio,and increase investment in education to improve the human capital stock.