Review of Empirical Studies on China

Abstract

The last chapter has shown that Chinese provinces develop at an uneven pace. Various central and western provinces do not attract sufficient physical capital as they often lack adequate human capital. As Chinese provinces are at different stages of development, different types of human capital can be expected to contribute to different degrees in different provinces, so that China’s structural transformation affects China’s provinces to different degrees. It has also been shown that China experiences a shift in comparative advantage from labour-intensive goods through capital-intensive to technology-oriented human capital-intensive production, but not all provinces benefit equally from such a transformation.