Research on the Effects on Regional Economic Growth of Human Capital Inequality in China

This paper has studied the effect on economic growth of human capital inequality and provided the measurement of stock and inequality of human capital. After calculating Gini coefficient and ratio of top quintile to bottom quintile (top₂₀/bottom₂₀) of human capital of each province (municipal or district) in China, considering other factors influencing economic growth, we use economic growth equation to examine whether human capital inequality significantly impact the economic growth. The result indicates that the top₂₀/bottom₂₀ significant impact on regional economic growth, and some effect is indirectly brought through human capital accumulation. Whereafter, taking the data of 31 province (municipal or district) as 31 observations, make a Granger causality test between human capital inequality and human capital accumulation. The result indicates that the human capital inequality of neighboring province Granger cause human capital accumulation.