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The role of human capital in China's economic development: Review and new evidence

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  • CHI, Wei
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Abstract

We carefully utilize empirical methods and measurement, and find that the effect of human capital on China's economic growth may be indirect through physical capital investment. This result is different than that found for OECD countries and has not been suggested by previous studies. In addition, in determining physical capital investment, workers with college education play a more significant role than those with primary and secondary education, suggesting the possibility of capital-skill complementarity. This finding has implications for China's future regional growth inequality: the inequality may increase rather than decrease, because physical capital investment continues to accumulate faster in the eastern area where the human capital stock is larger and thus leads to greater economic growth in the east.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 19 (2008)
Issue (Month): 3 (September)
Pages: 421-436

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Handle: RePEc:eee:chieco:v:19:y:2008:i:3:p:421-436

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Web page: http://www.elsevier.com/locate/chieco

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Cited by:
  1. Martine Audibert & Pascale Combes Motel & Alassane Drabo, 2011. "Global Burden of Disease and Economic Growth," Working Papers halshs-00551770, HAL.
  2. Sai Ding & John Knight, 2011. "Why has China Grown So Fast? The Role of Physical and Human Capital Formation," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 73(2), pages 141-174, 04.
  3. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2010. "An Analysis on Technical Efficiency in Post-reform China," MPRA Paper 41034, University Library of Munich, Germany.
  4. Chi, Wei & Qian, Xiaoye, 2009. "The role of education in regional innovation activities and economic growth: spatial evidence from China," MPRA Paper 15779, University Library of Munich, Germany.
  5. Van Leeuwen, Bas & van Leeuwen-Li, Jieli & Foldvari, Peter, 2011. "Regional human capital in Republican and New China: Its spread, quality and effects on economic growth," MPRA Paper 43582, University Library of Munich, Germany.
  6. Jalil, Abdul & Idrees, Muhammad, 2013. "Modeling the impact of education on the economic growth: Evidence from aggregated and disaggregated time series data of Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 383-388.
  7. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.

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