Human Capital Accumulation and Regional Economy: A Case Study of Zhejiang

Following the expand Slow framework, paper discusses the influence of human capital on regional economic disparity, and tests the effects of health human capital and education human capital to regional economic growth respectively. The econometric results present robust econometric evidence of conditional convergence and club conditional convergence among Zhejiang regional economy over the period 1997-2005. The empirical results indicate higher rates of return of physical capital, education human capital and health human capital to economy growth, and they are beneficial to the economic convergence. This finding explains the investment of education and health human capital is more important to economic growth.