Estimate the Impact of Human Capital on Regional Labor Productivity in Jiangsu Province

The focus of this paper is on the role of human capital in explaining labor productivity variation among 13 cities in Jiangsu Province within a regression framework. Human capital is measured in terms of the number of scientific and technical personnel by all sectors. This paper mainly uses the spatial Durbin model which describes the spatial dependence and spatial regression relationship. The paper outlines the spatial Durbin model along with the associated methodology for estimating the impact of human capital on regional labor productivity based upon Stata12.0 software. The results shed some interesting light on the contribution of human capital to labor productivity differences in 13cities among Jiangsu province. A ceteris paribus increase in the level of human capital is found to have a significant and positive impact on the regional labor productivity which has significance.