Investing in Human Capital Key to Reducing Regional Inequality in China
The article discusses how investing in human capital can help reduce regional inequality and promote economic growth in China. By analyzing factors like physical capital, technology transfer, and market reforms, the researchers found that educated workers have a higher productivity and contribute to overall output. They also discovered that human capital has a direct positive impact on total factor productivity (TFP) growth, especially through domestic innovation. The study suggests that increasing investments in human capital and infrastructure can effectively narrow regional gaps in China.