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Understanding TFP growth in inland regions of China: an empirical study of the effects of three factors

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  • Yanqing Jiang

Abstract

In this paper, we empirically examine the potential effects of international openness, domestic coastal-inland market integration, and human capital accumulation on TFP growth in inland provinces in China. By using a nonlinear technique as our main regression approach as well as an extended GMM method as robustness checks, we show that human capital accumulation plays an important role in promoting TFP growth in the inland provinces. Our results support the argument that the most important contribution of human capital to income growth lies not in its static, direct effect as an accumulable factor in the production function, but in its dynamic role in promoting TFP growth. Our regression results also provide evidence for the positive roles international openness and domestic coastal-inland market integration play in promoting TFP growth in inland provinces in China.

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  • Yanqing Jiang, 2014. "Understanding TFP growth in inland regions of China: an empirical study of the effects of three factors," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(3), pages 365-382, May.
    • Handle: RePEc:taf:irapec:v:28:y:2014:i:3:p:365-382
    DOI: 10.1080/02692171.2013.872087
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    Cited by:

    1. Dongyang Zhang, 2017. "Is working capital management value-enhancing through alleviating financial constraints? Evidence from Chinese non-listed firms," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 15(4), pages 373-406, October.

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