Analysis of Simultaneous Interaction Between Human Capital and Regional Economic Growth

The relationship between human capital accumulation and the gap of regional economic growth is focused at home and abroad among theorists.Why did the regional economic growth in China show convergence in the 1980s but divergence in the 1990s? How does human capital act on economic growth? The empirical studies didn't take the simultaneous interaction between human capital accumulation and regional economic growth into consideration for they did not consider the convergence of human capital accumulation itself.Based on the Three-Stage Least Square Method,this paper estimates the simultaneous model of regional economic growth in China and the human capital growth,and the results show that human capital accumulation is convergent in itself and there is a positive correlation between the ratio of human capital accumulation and that of regional economic growth.At the same time,the level of human capital has double effects on regional economic growth which are direct convergence and indirect divergence.A higher level of human capital growth ratio in less developed regions is a very important factor for regional economic growth convergence in the 1980s.So it is of great significance for narrowing the gap in regional economic growth to increase the investment and accumulation in human capital in less developed regions.