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

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  • CHI, Wei

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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  • CHI, Wei, 2008. "The role of human capital in China's economic development: Review and new evidence," China Economic Review, Elsevier, vol. 19(3), pages 421-436, September.
  • Handle: RePEc:eee:chieco:v:19:y:2008:i:3:p:421-436
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    2. 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.
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    5. Krume Nikoloski & Vlatko Paceskoski, 2015. "Contemporary Trends In The World Trade," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 21-26, December.
    6. Krume Nikoloski & Trajko Miceski & Vlatko Paceskoski, 2015. "The Impact Of The Capital On The Economic Development Of The Developing Countries," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 76-81, December.
    7. Martine AUDIBERT & Pascale COMBES MOTEL & Alassane DRABO, 2010. "Global Burden of Disease and Economic Growth," Working Papers 201036, CERDI.
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    10. Gang Chen & Brett Inder & Bruce Hollingsworth, 2014. "Health Investment And Economic Output In Regional China," Contemporary Economic Policy, Western Economic Association International, vol. 32(2), pages 261-274, April.
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    15. 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.
    16. Panagiotis PEGKAS & Constantinos TSAMADIAS, 2015. "Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 9-32, June.
    17. Su, Yaqin & Liu, Zhiqiang, 2016. "The impact of foreign direct investment and human capital on economic growth: Evidence from Chinese cities," China Economic Review, Elsevier, vol. 37(C), pages 97-109.
    18. 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.
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