Human capital, as an important factor of production, directly promotes economic growth. On the other hand, it indirectly promotes economic growth by stimulating the accumulation of physical capital and improving the level of technological innovation. Therefore, human capital is the fundamental reason for economic growth. The key to make human capital play a long-term role is to correctly set the human capital accumulation equation. Different from the existing articles that set human capital accumulation equation from the perspective of human capital investment and physical capital investment, this paper focuses on the marginal output of physical capital. Based on the marginal output of physical capital, this paper makes human capital accumulation subject to a regulation that can completely offset the diminishing effect of physical capital marginal output and keep it at a reasonable level. This way of human capital accumulation is called “regulated” accumulation. The derivation of theoretical model proves that the regulated human capital accumulation, which is based on constant marginal output of physical capital, enables the growth rate of output to be constant and positive. Therefore, this paper finds the source of long-term economic growth from aspect of human capital. As the embodiment of a country’s comprehensive strength and core competitiveness, human capital has important strategic significance and great potential in China’s sustainable economic development. Regulated human capital accumulation can provide a new driving force for China’s economic growth and promote long-term development.
| Published in | Economics (Volume 11, Issue 1) |
| DOI | 10.11648/j.eco.20221101.11 |
| Page(s) | 1-8 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2022. Published by Science Publishing Group |
Human Capital, Physical Capital, Regulated Accumulation, Long-Term Economic Growth
| [1] | Schultz T. W. Investment in Human Capital [J]. The American Economic Review, 1961, 51 (1): 1-17. |
| [2] | Becker G. S. Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education [M]. New York: Columbia University Press, 1964. |
| [3] | Lucas R. E. On the Mechanics of Economic Development [J]. Journal of Monetary Economics, 1988, (22): 3-42. |
| [4] | Romer P. M. Human Capital and Growth: Theory and Evidence [R]. Carnegie Rochester Conference Series on Public Policy, 1989, 32: 251-286. |
| [5] | Mankiw N. G., Romer D. and Weil D. N. A Contribution to the Empirics of Economic Growth [J]. The Quarterly Journal of Economics, 1992, 107 (2): 407-437. |
| [6] | Graca J., Jafarey S., Philippopoulos A. Interaction of Human and Physical Capital in a Model of Endogenous Growth [J]. Economics of Planning, 1995, 28 (2-3): 93-118. |
| [7] | Bond E W., Ping W., Chong K. Y. A General Two-Sector Model of Endogenous Growth with Human and Physical Capital: Balanced Growth and Transitional Dynamics [J]. Journal of Economic Theory, 1996, 68 (1): 149-173. |
| [8] | Galor O., Moav O. From Physical to Human Capital Accumulation: Inequality and the Process of Development [J]. Review of Economic Studies, 2004, 71 (4): 1001-1026. |
| [9] | Human Capital Research Group. The Coordination between Human and Physical Capital and its Effects on Economic Efficiency [J]. Statistical Research, 2012, 29 (4): 32-38. |
| [10] | Zhao Xincheng. Optimal Scale and Structure of Physical Capital and Human Capital Accumulation—A Theoretical Analysis Framework [J]. Economic Forum, 2014, (8): 173-176. |
| [11] | Zhao Chunyan, Zhang Ling, Xie Guogen. Matching Level of Human Capital and Physical Capital Accumulation in China [J]. Journal of Jilin Business and Technology College, 2019, 35 (4): 50-56. |
| [12] | Benhabib J., Spiegel M. M. The role of human capital in economic development Evidence from aggregate cross-country data [J]. Journal of Monetary Economics, 1994, 34 (2): 143-173. |
| [13] | Krueger A. B., Lindahl M. Education for Growth: Why and For Whom? [J]. Journal of Economic Literature, 2001, 39: 1101-1136. |
| [14] | Sianesi B., Van Reenen J. The Outputs to Education: Macroeconomics [J]. Journal of Economic Surveys, 2003, 17 (2): 157-200. |
| [15] | Grier R. The Interaction of Human and Physical Capital Accumulation: Evidence from Sub-Saharan Africa [J]. Kyklos, 2005, 58 (2): 195-211. |
| [16] | Amir-Ud-Din R., Usman M., Abbas F., et al. Human versus physical capital: issues of accumulation, interaction and endogeneity [J]. Economic Change and Restructuring, 2019, 52 (4): 351-382. |
| [17] | Chi W. The role of human capital in China’s economic development: Review and new evidence [J]. China Economic Review, 2008, 19 (3): 421-436. |
| [18] | Wang Cong. A Study of the Dynamic Relationship between Physical Capital, Human Capital and Economic Growth—Based on the 1978-2009 Data Analysis in China [J]. Journal of Shandong Finance Institute, 2011, 115 (5): 80-89. |
| [19] | Zhang Lei, Wang Liang. On the Dynamic Relationship between Human and Physical Capital and Economic Growth in China [J]. Journal of Yangzhou University, 2013, 17 (1): 44-49. |
| [20] | Hirschman A. O. The Strategy of Economic Development [M]. New Haven: Yale University Press, 1958. |
| [21] | López-Bazo E., Moreno R. Human Capital Stimulate Investment in Physical Capital? Evidence from a Cost System Framework [J]. Economic Modelling, 2008, 25 (6): 1295-1305. |
| [22] | Breton T. R. The Role of Education in Economic Growth: Theory, History, and Current Outputs [J]. Educational Research, 2013, 55 (2): 121-138. |
| [23] | Zheng Hongchao, Yang Shuqin. Human Capital’s Overcoming of Diminishing Marginal Output of Physical Capital in Long-term Economic Growth [J]. Economic Research Guide, 2009 (6): 178-179. |
APA Style
Kangping Wu, Mengtao Wu. (2022). Positive Influence of Regulated Human Capital Accumulation on Economic Growth: A Theoretical Model. Economics, 11(1), 1-8. https://doi.org/10.11648/j.eco.20221101.11
ACS Style
Kangping Wu; Mengtao Wu. Positive Influence of Regulated Human Capital Accumulation on Economic Growth: A Theoretical Model. Economics. 2022, 11(1), 1-8. doi: 10.11648/j.eco.20221101.11
AMA Style
Kangping Wu, Mengtao Wu. Positive Influence of Regulated Human Capital Accumulation on Economic Growth: A Theoretical Model. Economics. 2022;11(1):1-8. doi: 10.11648/j.eco.20221101.11
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.eco.20221101.11,
author = {Kangping Wu and Mengtao Wu},
title = {Positive Influence of Regulated Human Capital Accumulation on Economic Growth: A Theoretical Model},
journal = {Economics},
volume = {11},
number = {1},
pages = {1-8},
doi = {10.11648/j.eco.20221101.11},
url = {https://doi.org/10.11648/j.eco.20221101.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20221101.11},
abstract = {Human capital, as an important factor of production, directly promotes economic growth. On the other hand, it indirectly promotes economic growth by stimulating the accumulation of physical capital and improving the level of technological innovation. Therefore, human capital is the fundamental reason for economic growth. The key to make human capital play a long-term role is to correctly set the human capital accumulation equation. Different from the existing articles that set human capital accumulation equation from the perspective of human capital investment and physical capital investment, this paper focuses on the marginal output of physical capital. Based on the marginal output of physical capital, this paper makes human capital accumulation subject to a regulation that can completely offset the diminishing effect of physical capital marginal output and keep it at a reasonable level. This way of human capital accumulation is called “regulated” accumulation. The derivation of theoretical model proves that the regulated human capital accumulation, which is based on constant marginal output of physical capital, enables the growth rate of output to be constant and positive. Therefore, this paper finds the source of long-term economic growth from aspect of human capital. As the embodiment of a country’s comprehensive strength and core competitiveness, human capital has important strategic significance and great potential in China’s sustainable economic development. Regulated human capital accumulation can provide a new driving force for China’s economic growth and promote long-term development.},
year = {2022}
}
TY - JOUR T1 - Positive Influence of Regulated Human Capital Accumulation on Economic Growth: A Theoretical Model AU - Kangping Wu AU - Mengtao Wu Y1 - 2022/01/25 PY - 2022 N1 - https://doi.org/10.11648/j.eco.20221101.11 DO - 10.11648/j.eco.20221101.11 T2 - Economics JF - Economics JO - Economics SP - 1 EP - 8 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20221101.11 AB - Human capital, as an important factor of production, directly promotes economic growth. On the other hand, it indirectly promotes economic growth by stimulating the accumulation of physical capital and improving the level of technological innovation. Therefore, human capital is the fundamental reason for economic growth. The key to make human capital play a long-term role is to correctly set the human capital accumulation equation. Different from the existing articles that set human capital accumulation equation from the perspective of human capital investment and physical capital investment, this paper focuses on the marginal output of physical capital. Based on the marginal output of physical capital, this paper makes human capital accumulation subject to a regulation that can completely offset the diminishing effect of physical capital marginal output and keep it at a reasonable level. This way of human capital accumulation is called “regulated” accumulation. The derivation of theoretical model proves that the regulated human capital accumulation, which is based on constant marginal output of physical capital, enables the growth rate of output to be constant and positive. Therefore, this paper finds the source of long-term economic growth from aspect of human capital. As the embodiment of a country’s comprehensive strength and core competitiveness, human capital has important strategic significance and great potential in China’s sustainable economic development. Regulated human capital accumulation can provide a new driving force for China’s economic growth and promote long-term development. VL - 11 IS - 1 ER -
Email: