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Nonlinear Effect of Human Capital on Economic Growth

Received: 23 November 2021     Accepted: 6 December 2021     Published: 11 December 2021
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Abstract

Under the “new normal”, China's economic development mode has shifted from scale and speed to quality and efficiency, and the development driving force has shifted from mainly relying on factor inputs such as resources and low-cost labor to innovation driven. Therefore, it is particularly important to correctly understand the different promoting effects of human capital on economic growth in different stages of human capital development. Consequently, the panel smooth transition regression model was used to study the threshold characteristics and regional differences for human capital of mental quality and physical quality to the economic growth from 1982 to 2019 in China. The results shown that, the mental quality and physical quality of urban and rural have nonlinear effects on economic growth, in addition to the model of physical quality of urban has two system, the other three models are three system. Except the effect of mental quality of rural on the economic growth inhibited the transformation of restrain to promote, the effect of rest of the models always shows promotion performance, along with the promotion of mental quality and physical quality of urban and rural, the promoting effect of economic growth is gradually strengthened. The stimulating effect of mental quality and physical quality of human capital on economic growth exits regional difference, the role of human capital on economic growth is more obvious especially in the eastern coastal areas and relatively developed areas of economy.

Published in American Journal of Theoretical and Applied Business (Volume 7, Issue 4)
DOI 10.11648/j.ajtab.20210704.19
Page(s) 137-145
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Human Capital, Economic Growth, Threshold Characteristics, PSTR

References
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    Yan Su. (2021). Nonlinear Effect of Human Capital on Economic Growth. American Journal of Theoretical and Applied Business, 7(4), 137-145. https://doi.org/10.11648/j.ajtab.20210704.19

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    Yan Su. Nonlinear Effect of Human Capital on Economic Growth. Am. J. Theor. Appl. Bus. 2021, 7(4), 137-145. doi: 10.11648/j.ajtab.20210704.19

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    AMA Style

    Yan Su. Nonlinear Effect of Human Capital on Economic Growth. Am J Theor Appl Bus. 2021;7(4):137-145. doi: 10.11648/j.ajtab.20210704.19

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  • @article{10.11648/j.ajtab.20210704.19,
      author = {Yan Su},
      title = {Nonlinear Effect of Human Capital on Economic Growth},
      journal = {American Journal of Theoretical and Applied Business},
      volume = {7},
      number = {4},
      pages = {137-145},
      doi = {10.11648/j.ajtab.20210704.19},
      url = {https://doi.org/10.11648/j.ajtab.20210704.19},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajtab.20210704.19},
      abstract = {Under the “new normal”, China's economic development mode has shifted from scale and speed to quality and efficiency, and the development driving force has shifted from mainly relying on factor inputs such as resources and low-cost labor to innovation driven. Therefore, it is particularly important to correctly understand the different promoting effects of human capital on economic growth in different stages of human capital development. Consequently, the panel smooth transition regression model was used to study the threshold characteristics and regional differences for human capital of mental quality and physical quality to the economic growth from 1982 to 2019 in China. The results shown that, the mental quality and physical quality of urban and rural have nonlinear effects on economic growth, in addition to the model of physical quality of urban has two system, the other three models are three system. Except the effect of mental quality of rural on the economic growth inhibited the transformation of restrain to promote, the effect of rest of the models always shows promotion performance, along with the promotion of mental quality and physical quality of urban and rural, the promoting effect of economic growth is gradually strengthened. The stimulating effect of mental quality and physical quality of human capital on economic growth exits regional difference, the role of human capital on economic growth is more obvious especially in the eastern coastal areas and relatively developed areas of economy.},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - Nonlinear Effect of Human Capital on Economic Growth
    AU  - Yan Su
    Y1  - 2021/12/11
    PY  - 2021
    N1  - https://doi.org/10.11648/j.ajtab.20210704.19
    DO  - 10.11648/j.ajtab.20210704.19
    T2  - American Journal of Theoretical and Applied Business
    JF  - American Journal of Theoretical and Applied Business
    JO  - American Journal of Theoretical and Applied Business
    SP  - 137
    EP  - 145
    PB  - Science Publishing Group
    SN  - 2469-7842
    UR  - https://doi.org/10.11648/j.ajtab.20210704.19
    AB  - Under the “new normal”, China's economic development mode has shifted from scale and speed to quality and efficiency, and the development driving force has shifted from mainly relying on factor inputs such as resources and low-cost labor to innovation driven. Therefore, it is particularly important to correctly understand the different promoting effects of human capital on economic growth in different stages of human capital development. Consequently, the panel smooth transition regression model was used to study the threshold characteristics and regional differences for human capital of mental quality and physical quality to the economic growth from 1982 to 2019 in China. The results shown that, the mental quality and physical quality of urban and rural have nonlinear effects on economic growth, in addition to the model of physical quality of urban has two system, the other three models are three system. Except the effect of mental quality of rural on the economic growth inhibited the transformation of restrain to promote, the effect of rest of the models always shows promotion performance, along with the promotion of mental quality and physical quality of urban and rural, the promoting effect of economic growth is gradually strengthened. The stimulating effect of mental quality and physical quality of human capital on economic growth exits regional difference, the role of human capital on economic growth is more obvious especially in the eastern coastal areas and relatively developed areas of economy.
    VL  - 7
    IS  - 4
    ER  - 

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Author Information
  • China Center for Human Capital and Labor Market Research, Central University of Finance and Economics, Beijing, China

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