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Measures of human capital and the mechanics of economic growth

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  • Zhang, Xiaobei
  • Wang, Xiaojun

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 measures. The positive “benefit of being backward” due to lower initial income is almost trumped by the negative impact of low levels of human capital in the poorest areas.

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  • Zhang, Xiaobei & Wang, Xiaojun, 2021. "Measures of human capital and the mechanics of economic growth," China Economic Review, Elsevier, vol. 68(C).
  • Handle: RePEc:eee:chieco:v:68:y:2021:i:c:s1043951x21000596
    DOI: 10.1016/j.chieco.2021.101641
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