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Influence of Endogenous Human Capital on China’s Economic Growth

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  • Zhao Li

Abstract

Based on the framework of endogenous economic growth, this paper took the education sector as a separate human capital production sector, and then an economic growth model with endogenous human capital accumulation is constructed, and a combination of theoretical derivation and simulation is used for the education investment behavior of the Chinese household sector, as well as the analysis of the efficiency of human capital accumulation. Based on above theoretical analysis, then to study the impact of educational investment on economic growth. The study found that the more the elasticity of education investment, the higher the efficiency of human capital accumulation, and the greater willingness of families to increase investment on education. Human capital accumulation is a key factor in determining the economic growth potential of a country or region, and education is the most important way for the accumulation of human capital. The investment in education is necessary for China under the condition of the economic growth rate slowing down.

Suggested Citation

  • Zhao Li, 2020. "Influence of Endogenous Human Capital on China’s Economic Growth," Asian Business Research Journal, Eastern Centre of Science and Education, vol. 5, pages 13-18.
    • Handle: RePEc:ajn:abrjou:v:5:y:2020:i::p:13-18:id:72
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