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Physical Capital, Human Capital, and Social Capital: The Changing Roles in C hina's Economic Growth
Author(s) -
Li Yuheng,
Wang Xun,
Westlund Hans,
Liu Yansui
Publication year - 2015
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12084
Subject(s) - capital deepening , economics , endogeneity , physical capital , human capital , capital accumulation , financial capital , capital intensity , capital (architecture) , economic capital , fixed investment , labour economics , monetary economics , investment (military) , capital formation , market economy , archaeology , politics , political science , law , econometrics , history
This paper examines the roles of physical capital, human capital, and social capital in C hina's economic growth during the reform period 1981–2010. Empirical estimation confirms that physical capital and human capital contribute to the economic growth, probably due to the capital accumulation and the improvement of labor productivity. The impact of social capital turns from being insignificant in the 1980s and the 1990s to be positive in the 2000s, suggesting its rising importance in recent decades. A declining role of physical capital in the economic growth in C hina from 1990s to 2000s is also found. The findings hold for several additional robustness checks, including focusing on longer term determinants of the economic growth, subregional analysis, and endogeneity. Furthermore, the foreign direct investment inflows and adjustment of economic ownership structure are also important for economic growth in C hina.