The Impact of Higher Education and Human Capital Quality on “Local-Neighborhood” Economic Growth
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Published
May 28, 2021
Abstract
Based on China’s provincial panel data from 1990 to 2017 and the improved Lucas, Nelson & Phelps model, the Spatial Dubin Model is used to test the spatial effects of higher education and human capital quality. The results showed that high-level human capital, characterized by higher education and urban labor income index, indirectly promoted local economic growth through technological innovation. There was also a “local-neighborhood” synergy effect. The neighborhood effect was manifested in that it affected the economic development of neighbors by promoting technological catch-up. After considering the quality factor, both the local and neighborhood effects were enhanced. From a regional perspective, higher education in the Yangtze River Delta, where the level of economic development is relatively high, was manifested as a spatial spillover effect of technological innovation and the neighborhood effect in the northeastern Bohai Rim and the Pearl River Delta was manifested as a technological catch-up.
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Keywords
Higher Education, Human Capital Quality, Economic Growth, Spatial Dubin Model
Supporting Agencies
This study was supported by the Ministry of Education’s Philosophy and Social Science Major Research Project (15JZD040) and the Central Government’s Special Fund for Basic Scientific Research in Universities (2019NTSS06).
References
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Qian, X. (2012). A statistical estimation of human capital level. Statistical Research, 29(8):74-82. [Chinese] DOI: https://doi.org/10.19343/j.cnki.11-1302/c.2012.08.013
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5):71-102. https://www.journals.uchicago.edu/doi/abs/10.1086/261725
Schultz, T.W. (1961). Investment in Human Capital. The American Economic Review, 51(1):1-17. https://www.jstor.org/stable/1818907?seq=1
Zhang, T., Li, J., & Zhou, H. (2016). Regional knowledge spillovers, collaborative innovation, and total factor productivity growth in high-tech industries. Finance and Trade Research, 27(1):9-18. [Chinese] DOI: https://doi.org/10.19337/j.cnki.34-1093/f.2016.01.002
Zhu, P., & Xu, D. (2007). Estimation of human capital in Chinese cities. Economic Research Journal, 53(9):84-95. [Chinese] https://www.2002n.com/d/img/upfiles_6/200849153137197.pdf
Cai, F., & Du, Y. (2000). Convergence and differences in China’s regional economic growth: Implications for the western development strategy. Economic Research Journal, 46(10):30-37+80.
Chang, X., & Zhao, Y. (2017). An econometric research on the economic growth effect of China’s human capital: An empirical analysis based on inter-provincial panel data. Journal of Statistics and Information, 32(11):10-20. [Chinese] https://www.cnki.com.cn/Article/CJFDTotal-TJLT201711002.htm
Chen, Q. (2014). Advanced econometrics and Stata application (Second Edition). Beijing: Higher Education Press. ISBN: 978-7-04-032983-4.
Deng, F., & Ke, W. (2020). Heterogeneous human capital and economic development: an empirical study based on spatial heterogeneity. Statistical Research, 37(2):93-104. [Chinese] https://www.cnki.com.cn/Article/CJFDTotal-TJYJ202002009.htm
Ding, S., & Knight, J. (2011). Why has China grown so fast? The role of physical and human capital formation. Oxford Bulletin of Economics & Statistics, 73(2):141–174. DOI: https://doi.org/10.1111/j.1468-0084.2010.00625.x
Dong, Z. (2017). Research on the interactive relationship between human capital and economic growth: An empirical analysis based on China’s human capital index. Macroeconomics, 37(4):88-98. [Chinese] DOI: https://doi.org/10.16304/j.cnki.11-3952/f.2017.04.010
Du, W., Yang, Z., & Xia, G. (2014). Research on the mechanism of human capital promoting economic growth. China Soft Science, 29(8):173-183. [Chinese] DOI: https://doi.org/10.3969/j.issn.1002-9753.2014.08.018
Du, Y., & Zhao, R. (2018). The role of education in economic growth: factor accumulation, efficiency improvement, or capital complementarity? Educational Research, 39(5):27-35. [Chinese] https://www.cnki.com.cn/Article/CJFDTotal-JYYJ201805005.htm
Engelbrecht, H.J. (2003). Human Capital and Economic Growth: Cross-Section Evidence for OECD Countries. Economic Record, 79:40-51. DOI: https://doi.org/10.1111/1475-4932.00090
Fischer, M.M., Bartkowska, M., Riedl, A., Sardadvar, S., & Kunnert, A. (2009). The impact of human capital on regional labour productivity in Europe. Letters in Spatial and Resource Sciences, 2(2):97-108. DOI: https://doi.org/10.1007/s12076-009-0027-7
Graham, J.W., & Webb, R.H. (1979). Stocks and depreciation of human capital: New evidence from a present-value perspective. Review of Income and Wealth, 25(2):209-224.
Hanushek, E.A., & Woessmann, L. (2011). How much do educational outcomes matter in OECD countries? Economic Policy, 26(67): 427-491. https://www.nber.org/system/files/working_papers/w16515/w16515.pdf
Holz, C.A., & Sun, Y. (2018). Physical capital estimates for China’s provinces, 1952-2015 and beyond. China Economic Review, 51:342-357. DOI: https://doi.org/10.1016/j.chieco.2017.06.007
Jamison, E.A., Jamison, D.T., & Hanushek, E. A. (2007). The effects of education quality on income growth and mortality decline. Economics of Education Review, 26(6):771-788. DOI: https://doi.org/10.1016/j.econedurev.2007.07.001
Jorgenson, D., & Fraumeni, B.M. (1989). The Accumulation of Human and Non-human capital, 1948–1984. Chicago: University of Chicago Press. ISBN: 0-226-48468-8.
Kendrick, J.W. (1976). The formation and stocks of total capital. New York: Columbia University Press for NBER. ISBN: 0-87014-271-2.
LeSage, J.P., & Pace, R.K. (2009). Introduction to spatial econometrics. New York: CRC Press. ISBN: 978-142-006-424-7.
Li, H., & Tang, T. (2015). Regional differences in labor quality based on human capital. Journal of Central University of Finance & Economics, 35(8):72-80+86. [Chinese]
http://www.iyonly.com/xbbjb.iyonly.com/CN/article/downloadArticleFile.do?attachType=PDF&id=5802
Li, T., Lai, J.T., Wang, Y., & Zhao, D. (2016). Long-run relationship between inequality and growth in post-reform China: New evidence from dynamic panel model. International Review of Economics & Finance, 41:238 -252. DOI: https://doi.org/10.1016/j.iref.2015.08.009
Liang, R., Yu, J., & Feng, S. (2015). The calculation of the contribution of human capital to China’s economic growth. South China Journal of Economics, 33(7):1-14. [Chinese] DOI: https://doi.org/10.19592/j.cnki.scje.2015.07.001
Lucas Jr, R.E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1):3-42. DOI: https://doi.org/10.1016/0304-3932(88)90168-7
Meng, W., & Wang, X. (2014). China’s provincial-level of human capital measurement-based on the cost method of perpetual inventory technology. Studies in Labor Economics, 2(4):141-160. [Chinese] https://www.cnki.com.cn/Article/CJFDTotal-LDJJ201404009.htm
Mulligan, C.B., & Sala-i-Martin, X. (1997). A labor-income-based measure of the value of human capital: An application to the United States. Japan and the World Economy, 9(2):159-191. DOI: https://doi.org/10.1016/S0922-1425(96)00236-8
Nelson, R.R., & Phelps, E.S. (1965). Investment in humans, technological diffusion, and economic growth. Cowles Foundation Discussion Papers 189, Cowles Foundation for Research in Economics, Yale University.
https://ideas.repec.org/p/cwl/cwldpp/189.html
Psacharopoulos, G., & Patrinos, H.A. (2004). Returns to investment in education: A further update. Education Economics, 12(2):111-134. DOI: https://doi.org/10.1080/0964529042000239140
Qian, X. (2012). A statistical estimation of human capital level. Statistical Research, 29(8):74-82. [Chinese] DOI: https://doi.org/10.19343/j.cnki.11-1302/c.2012.08.013
Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5):71-102. https://www.journals.uchicago.edu/doi/abs/10.1086/261725
Schultz, T.W. (1961). Investment in Human Capital. The American Economic Review, 51(1):1-17. https://www.jstor.org/stable/1818907?seq=1
Zhang, T., Li, J., & Zhou, H. (2016). Regional knowledge spillovers, collaborative innovation, and total factor productivity growth in high-tech industries. Finance and Trade Research, 27(1):9-18. [Chinese] DOI: https://doi.org/10.19337/j.cnki.34-1093/f.2016.01.002
Zhu, P., & Xu, D. (2007). Estimation of human capital in Chinese cities. Economic Research Journal, 53(9):84-95. [Chinese] https://www.2002n.com/d/img/upfiles_6/200849153137197.pdf
How to Cite
Zhao, R., & Du, Y. (2021). The Impact of Higher Education and Human Capital Quality on “Local-Neighborhood” Economic Growth. Best Evidence in Chinese Education, 8(1), 1041–1057. https://doi.org/10.15354/bece.21.ar22
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