China's Human Capital and Economic Development

Human capital, as a production factor,is playing a decisive role in China's economic development. In the modern society, economic growth depends on not only physical capital, but also more on human capital. The obtain of physical capital and the accumulation of wealth are all driven by human capital, which has become the source and power for the modern economic growth and development. As a result, increasing the investment of human capital and improving the quality of human resource have become important means to promote economic development. Basing on the theory of human capital, the article constructed a simple statistical model, discussed the effect of human capital on economic development, analyzed the present situation of human capital, and finally, put forward some suggestions to how to improve the human capital.