The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis

This study examines the effect of the composition of human capital on economic growth in China, using the Generalized Methods of Moments (GMM) method. The results show that tertiary education plays a more important role than primary and secondary education on economic growth in China. Moreover, the role of the composition of human capital on regional economic growth is relevant to the level of development. The more developed provinces benefit more from tertiary education, while underdeveloped ones depend more on primary and secondary education.

Research Highlights► We examine the effect of composition of human capital on economic growth in China. ► Tertiary education plays a more important role on economic growth in China. ► The more developed provinces benefit more from tertiary education. ► The underdeveloped provinces depend more on primary and secondary education.