Based On The Empirical Evidence Of The Republic Of China

It is of great significance to explore the influence of poppy cultivation on human capital accumulation.Based on the historical facts of poppy cultivation in the Republic of China,this paper uses the unique historical data of poppy cultivation,educational statistics and 1982 census data to identify the important influence of poppy cultivation on human capital accumulation.The study found that poppy cultivation reduces the number of higher primary school graduates and students in each county in the short term,and in the long term it reduces the educational level of the local population.In the short term,the educational level of the Republic of China was selected as the core explained variable,and whether poppy cultivation would reduce educational level was studied.In the long run,the individual education level in 1982 was selected to explore the relationship between the long-term education level and a prefecture whether plant poppy in the Republic of China.The instrumental variable selected the exogenous soil suitability of crop that replace poppy.The soil suitability was an effective instrumental variable,reflecting the transmission mechanism between human capital in the Republic of China and human capital in 1982.The results show that poppy cultivation reduces the number of educated students and that of school in the short term,and poppy cultivation has a negative impact on long-term human capital.The 2SLS showed that if a prefecture plant poppy,the literate population decreased by 0.991 and the educational level decreased by 0.111 level in 1982.Poppy cultivation affects short-term human capital through increasing educational opportunity cost and decreasing health human capital.In the long run,the influence of intergenerational transmission decreases with time.Thus,poppy cultivation affects long-term human capital accumulation by affecting human capital in education.Therefore,regional economic development should cultivate human capital,industrial development should avoid resource-consuming development mode,and education investment can help to improve education human capital so as to provide power for the long-term development of regional economy.