A Comparative Study Of Economic Growth Determinants In China And Russia ——Human Capital And FDI Contributions

The People’s Republic of China and the Russian Federation are both emerging markets that started their journey away from the planned economy at the end of the 20 th century.However,the economic performance of the countries,though having some similar patterns,was different.This study attempts to compare the growth models of the two countries via statistical data analysis and ordinary least squares regression models’ estimation.The research is designed in the framework of the Endogenous growth theory with a special focus on human capital and FDI inputs in the GDP dynamics and control for traditional physical capital and labor factors.The results of the statistical and time series analysis are in line with the theoretical and intuitive conclusions that the physical and human capital inputs differ in China and Russia due to institutional and historical reasons.Human capital seems to be potentially the most important growth determinant for both countries,while the effect of FDI is supposed to be the least significant.In Russia,the effect of human capital resulted to be bigger in magnitude than in China,while the influence of physical capital on GDP turned out to be stronger in the PRC.