Abstract: This paper uses panel data analysis method, by collecting the economic statistic data of 28 provinces of China during 1996~2002, to study human capital's spilling-over effects in China and the difference of factor productivity between human capital sector and nonhuman-capital sector. The conclusion of this paper is that human capital has obviously positive spilling-over effects on nonhuman capital sector while the marginal productivity of human capital sector is lower than that of non-human-capital sector.