TITLE:
Inclusive Economic Growth from Institutional Transition of Educational Centralization: Panel Data Evidence in China’s History Since 1978 to 2008
AUTHORS:
Wenxing Zhou, Jie Zhang
KEYWORDS:
Inclusive Economic Growth, Inclusive Economic Institution, Human Capital, China Human Capital Institution, Inclusive Growth Miracle
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.3,
February
9,
2018
ABSTRACT: Partly because interregional divergence for several decades
in China had been concluded, Chinese development path is always criticized by many
western scholars. However, this paper argues for an actual convergence in
evidence of new data set with explanation from its provincial initially average
income, institutional transition of education, and booming labor mobility, etc. as explanatory variables.
Interregional GDP per worker satisfies β-convergence
on condition that domestic in- and out-migrations are included in denominators,
when the quickly-accumulated and spatially-equalized human capital is decisive to
the convergence and growth. The preferential economic policies for the first-open
coastal line even inversely accelerate the convergence process nationwide because
of huge in- and out-migration. The central government initially “giving priority
to efficiency” seemed to abandon spatial fairness, but it ultimately leads to the best ending of embodying inclusivity for employment
with quick economic growth in the long run. The path of socialism with Chinese characteristics
for development is highly positive in the field of pushing inclusive growth miracle.