| Abstract | Under the framework of Capital-Skill Complementarity, this paper studied the excitation of physical capital to human capital. The result shown that, although the physical capital does not directly solve the problem of efficiency in the growth, but the upgrade of labor skill requirement would produce education incentive effect, and induced the level of human capital and output, it’s a important way is to improve the efficiency of growth. After calculation, the medium level of physical capital to economic growth through the effect on human capital is 11.9%, the level is high if industrialization degree is high, "high industry" areas are 18.8% ", while the “low industry" areas are 8.8%. That is to say, the industrial upgrading act on the effect the economics not only from the transformation of labor force in different production department, but also from the self renewal of labor skills. But there are still certain structural problems need to be solved in this process: Firstly, in " low industry" areas, the incentive degree of physical capital to human capital was significantly lower than the " high industry" areas; Secondly, under the physical capital incentive, public education resources were allocated to higher education firstly, followed by the fundamental education, but the education of occupation is not obvious, this allocation was not met China's "dumbbell" demand structure; in "low industry" area, physical capital did not produce incentive effect on public education on the whole, just brought positive influence on higher education, impact on fundamental education is not significant, even for the occupation education has a significant crowding out effect. Therefore, the transition of economic driving force is not allocating physical and human capital investment mechanically, but in exploring and counseling endogenous power, so we need to create a certain system environment to adapt and counseling. |