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Human Capital and the Economic Convergence Mechanism: Evidence from China

Author

Listed:
  • Zhang, Xiaobei

    (Zhejiang University)

  • Li, Haizheng

    (Georgia Tech)

  • Wang, Xiaojun

    (University of Hawaii at Manoa)

  • Fleisher, Belton M.

    (Ohio State University)

Abstract

We examine the mechanism by which human capital affects economic growth and convergence, using provincial level panel data from China. We specify alternative measures of human capital and apply them to an enhanced growth model which we estimate parametrically, nonparametrically, and with a threshold model. Our results show that economic convergence is pronouncedly conditional on human capital across all our measures of human capital. The positive "benefit of being backward" due to lower initial income is almost trumped by the negative impact of low levels of human capital among the poorest areas.

Suggested Citation

  • Zhang, Xiaobei & Li, Haizheng & Wang, Xiaojun & Fleisher, Belton M., 2019. "Human Capital and the Economic Convergence Mechanism: Evidence from China," IZA Discussion Papers 12224, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12224
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    Cited by:

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    2. Kwon, Ohyun & Fleisher, Belton M. & McGuire, William H. & Zhao, Min Qiang, 2020. "Provincial Trade, Financial Friction and Misallocation in China," IZA Discussion Papers 13074, Institute of Labor Economics (IZA).
    3. Juan Manuel Aristizábal & Gustavo A. García, 2021. "Regional economic growth and convergence: The role of institutions and spillover effects in Colombia," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1146-1161, August.
    4. Gregory Brock, 2020. "The real Oaxaca decomposition: convergence within Mexico’s Oaxaca region in the twenty-first century—Do types of crime and religious belief matter?," Economic Change and Restructuring, Springer, vol. 53(4), pages 543-569, November.
    5. Borsi, Mihály Tamás & Valerio Mendoza, Octasiano Miguel & Comim, Flavio, 2022. "Measuring the provincial supply of higher education institutions in China," China Economic Review, Elsevier, vol. 71(C).
    6. Mihai Antonia & Zizi Goschin & Irina-Denisa Munteanu & Mihail-Dumitru Sacală, 2023. "The Effects of Schooling Level on Economic Convergence in Emerging Countries: Evidence from Romania," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 125-142, September.
    7. Maksim Vlasov & Sergey N. Polbitsyn & Michael Olumekor & Hossam Haddad, 2023. "Exploring the Role of Socio-Cultural Factors on the Development of Human Capital in Multi-Ethnic Regions," Sustainability, MDPI, vol. 15(21), pages 1-14, October.
    8. Muhammad Hidayat & Nasri Bachtiar & Sjafrizal Sjafrizal & Elvina Primayesa, 2022. "Does Investment and Energy Infrastructure Influence Convergence in Sumatra Island, Indonesia?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 274-281, July.

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    More about this item

    Keywords

    human capital; economic convergence; regional economic development;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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