An empirical study on human resource capital and the development of service trade of Hebei Province

In this paper, an empirical study on human resource capital and the development of service trade exports has been made by means of cointegration analysis, Granger causality test based on the ECM model and variance decomposition method. The result shows that there are significant cointegration relations among basic human capital, specialized human capital, material capital and service trade exports; meanwhile, it also shows that the basic human capital and the specialized human capital are the long-term Granger causes of the service trade exports. A conclusion is further reached that the present competitive advantage of service trade in Hebei Province is based on the basic human capital. Moreover, a countermeasure is brought out that while full play is given to the competitive advantage of the basic human capital, the specialization human capital should also be developed in Hebei Province.