An Empirical Analysis of Human Capital Effect on the Economic Growth of Eastern, Middle and Western China

This paper, using the panel data model, analyzes the relationship between the capital investment and economic growth of China´s eastern, middle and western, in all 30 provinces and autonomous regions, and establishes long-term econometric model and sets up the panel error correction model (PECM) according to the co-integration theory. Then we analyze the contribution of all kinds of factors to the economic growth of eastern, middle and western in detail. The result shows that human capital plays very significant role on the eastern, middle and western. Thereby, it illuminates that labor quality is not high enough and improving employees´ cultural level and work skills are imperative. At the same time, we explain the other influencing factors to economic growth, and we find they have obviously different contribution to every areas´ economic growth.