Human Capital and the Economic Convergence Mechanism: Evidence from China

Xiaobei Zhang (), Haizheng Li, Xiaojun Wang () and Belton Fleisher ()
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Xiaobei Zhang: Zhejiang University

No 12224, IZA Discussion Papers from IZA Network @ LISER

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

Keywords: human capital; economic convergence; regional economic development (search for similar items in EconPapers)
JEL-codes: C33 O47 R11 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2019-03
New Economics Papers: this item is included in nep-cna, nep-geo, nep-gro and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp12224

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