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Openness, human capital and total factor productivity: evidence from China

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  • Helian Xu
  • Mingyong Lai
  • Peng Qi

Abstract

This paper examines the drivers behind China's economic growth. In particular, it focuses on the channels of knowledge spillovers: human capital and openness to trade and foreign direct investment. The specific features of the study include using the most recent comprehensive panel data consisting of 29 provinces during the period 1994-2006 and performing unit root and cointegration tests in the panel data framework. The paper finds that human capital, trade and FDI are the significant determinants of total factor productivity, but their importance varies with technological levels of provinces. These findings have important policy implications.

Suggested Citation

  • Helian Xu & Mingyong Lai & Peng Qi, 2008. "Openness, human capital and total factor productivity: evidence from China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(3), pages 279-289.
  • Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:279-289
    DOI: 10.1080/14765280802283576
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    Cited by:

    1. Mallick, Jagannath, 2017. "Structural Change and Productivity Growth in India and the People’s Republic of China," ADBI Working Papers 656, Asian Development Bank Institute.

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    Keywords

    openness; human capital; economic growth; panel data;

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