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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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    References listed on IDEAS

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    1. Dani Rodrik, 1988. "Closing the Technology Gap: Does Trade Liberalization Really Help?," NBER Working Papers 2654, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Ali, Amjad, 2022. "Financial Liberalization, Institutional Quality and Economic Growth Nexus: Panel Analysis of African Countries," MPRA Paper 116101, University Library of Munich, Germany.
    2. Jagannath Mallick, 2015. "Globalisation, Structural Change and Labour Productivity Growth in BRICS Economy," FIW Working Paper series 141, FIW.
    3. Li, Zhanli & Yang, Zichao, 2025. "ESG rating disagreement and corporate Total Factor Productivity: Inference and prediction," Finance Research Letters, Elsevier, vol. 78(C).
    4. Jichuan Sheng & Jing Xin & Weihai Zhou, 2023. "The impact of environmental regulations on corporate productivity via import behaviour: the case of China’s manufacturing corporations," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3671-3697, April.
    5. Jagannath Mallick, 2017. "Structural Change and Productivity Growth in India and the People’s Republic of China," ADBI Working Papers 656, Asian Development Bank Institute.
    6. Thanh Dinh Su & Canh Phuc Nguyen, 2022. "Productive Contribution of Public Spending and Human Capital in Developing Countries Revisited: The Role of Trade Openness," Foreign Trade Review, , vol. 57(1), pages 66-84, February.

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