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

Helian Xu, Mingyong Lai and Peng Qi

Journal of Chinese Economic and Business Studies, 2008, vol. 6, issue 3, 279-289

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.

Keywords: openness; human capital; economic growth; panel data (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (6)

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DOI: 10.1080/14765280802283576

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