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Facing The Challenge Of "Middle-income Trap":Describe The Landscape Of Human Capital And Its Correlation With Economic Growth In China

Posted on:2018-07-06Degree:MasterType:Thesis
Country:ChinaCandidate:M C LuFull Text:PDF
GTID:2359330515952330Subject:Population, resource and environmental economics
Abstract/Summary:PDF Full Text Request
Since the reform and opening up,China has kept high economic growth rate for 30 years,which was called as "a miracle of growth".However,since the GDP per capita of China reached 4000 U.S.dollars,China has entered a transition:from middle-income country to high-income country.The evidence from many Latin American and Asian countries shows that in this stage,the growth of economy slows down and is even in a state of stagnation,and finally gets bogged down in "Middle-income Trap".Therefore,we have to pay much attention to the risk of stagnation at this stage where many contradictions and risks coexist.With the slowdown of China's economic growth and the change of international industrial division of labor,China must transform from labor-intensive industry to capital and knowledge intensive industry.However,this raises a new question:can the current level of human capital in China meet the needs of industrial restructuring?The overall goal of this paper is to determine the correlation between human capital and economic growth from the perspective of avoiding "middle-income trap",based on the reality of China's development.In order to reach the overall goal,we firstly expound the urgency of the need of guard against the "middle income trap" from two aspects:domestic need and international pressure.Secondly,based on theoretical foundation,practical requirements and international experience,we prove that human capital accumulation is the only effective path to sustainably boost the development of China's economy in long-term.Thirdly,we describe the overall and regional levels of human capital in China from 1985-2014 by using the J-F method,and did a international comparison with 44 countries.Lastly,we analyze the correlation between human capital and economic growth by using empirical methods.The results of this paper show that the stock of human capital in China had a rapid growth since 1995.Meanwhile,there is a significant regional difference in terms of human capital-the human capital stock in the northwest and southwest regions is relatively lower than other regions.From the international comparison,although in total amount China's human capital stock is in the dominant position,but it is not a strong human capital country if we look at per capita.However,the accumulation of human capital in China is gradually increasing,and the education level of young people is improving.Besides,there is a positive effect of human capital on economic development,but the contribution of human capital is less than those of physical capital and labor.This indicates that the current quality of labor are not qualified enough to make great contribution to economy growth.Therefore,we propose the following recommendations:increase the investment in human capital,improve both quantity and the quality of education;pay great attention to the human capital investment in the disadvantaged regions;train the current the labor force,encourage innovation,promote the transformation of economic development model.
Keywords/Search Tags:Middle-income Trap, Human Capital, Economic Growth, Comparative Perspective
PDF Full Text Request
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