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Temporal Causality between Human Capital and Real Income in Cointegrated VAR Processes: Empirical Evidence from China, 1960-1990

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  • Paresh Kumar Narayan

    (Department of Accounting, Finance and Economics, Griffith University, Australia)

  • Russell Smyth

    (Department of Economics, Monash University, Australia)

Abstract

This article examines the causal relationship between human capital and real income using data for China from 1960 to 1999. In the long run there is unidirectional Granger causality running from human capital to real income, while in the short run there is unidirectional Granger causality running from real income to human capital.

Suggested Citation

  • Paresh Kumar Narayan & Russell Smyth, 2004. "Temporal Causality between Human Capital and Real Income in Cointegrated VAR Processes: Empirical Evidence from China, 1960-1990," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 3(1), pages 1-11, April.
    • Handle: RePEc:ijb:journl:v:3:y:2004:i:1:p:1-11
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    References listed on IDEAS

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    Cited by:

    1. Xiaolei Qian & Russell Smyth, 2006. "Growth Accounting for the Chinese Provinces 1990-2000: Incorporating Human Capital Accumulation," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(1), pages 21-37.

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    More about this item

    Keywords

    China; human capital; income; cointegration; Granger causality;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • I2 - Health, Education, and Welfare - - Education

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