A Study on the Jointly Endogenous Relationship between Human and Physical Capital Supply and Economic Growth in China

The character of the jointly endogenous structure of Chinese human and physical capital supply is that the human capital accumulation has positive externalities on the physical capital accumulation while the physical capital accumulation has negative externalities on the human capital accumulation,which has constrained the human capital growth in China. The study on the output growth based on the analysis of the jointly endogenous structure of Chinese human and physical capital supply indicates that the physical capital accumulation has made more contributions to the output growth than the human capital in China,and we believe that the unbalanced accumulation of the human and physical capital caused by the excessive expansion of the physical capital accumulation is the fundamental cause of this result. Therefore,to optimize the physical and human capital accumulation structure will be the top priority to the future economic development in China.