HUMAN CAPITAL AND ECONOMIC GROWTH IN FUJIAN PROVINCE-CHINA

Human capital is a key factor in driving economic growth at both the national and provincial levels. This study aimed to evaluate how human capital influences economic growth in Fujian by examining data from 2008 to 2020. Numerous theoretical and empirical studies have confirmed approaches to measuring human capital through formal education, cost-based approaches, and income-based approaches. Based on these approaches, the research objective, and data availability, two variables were selected: trained labor and state budget expenditure on education. To examine the impact of human capital on economic growth, the study employs a multivariate OLS regression method with the following tests: Normal Distribution of Residuals, Heteroscedasticity, Autocorrelation, Multicollinearity. The analysis used trained labor and educational budget expenditure as indicators of human capital. The findings indicated that both trained labor and educational spending had a significant positive impact on Fujian's GRDP. While trained workers contributed to increasing the province's economic output, the current level of spending on education and training was not substantial enough to generate a strong effect on the economy. Therefore, Fujian should focus on developing a strategy to cultivate high-quality human capital and enhance the effectiveness of its investment in education and training in the coming years. As the province continues to modernize and integrate into the global economy, its ability to develop and retain a skilled workforce will be a key determinant of its success. The province's policy makers must adopt solutions that encourage workers to invest in improving their skills and productivity, while also fostering a learning culture. In the context of climate change and limited local resources, Fujian’s reliance on human capital will be critical in achieving its goal of becoming a leading province in the China and, eventually, a highly developed region in China by 2030.