An Empirical Study on Rural Economic Growth in Hubei Province Based on New C-D Production Function

Human capital is becoming a major driving force of promoting economic growth and social development. Hubei Province as a large agricultural province is significantly affected by the human capital. The paper selects the correlation data about rural economic growth in Hubei Province as samples to analyze the contribution of physical capital and human capital to rural economic growth by the new C-D function and SPSS22. 0. The results show that the effect of the elasticity of human capital is greater than that of physical capital in rural economic development; the high quality rural human capital storage and the average years of schooling of rural labor force will increase the net income of rural household. Therefore,we should not only increase input of physical capital but also increase the input of human capital to raise the level of human capital in rural areas and promote sustainable development of rural economy.