The Impact of Higher Education and Human Capital Quality on “Local-Neighborhood” Economic Growth

Oct 15, 2026

Uploaded by Bulrr

The study examines how higher education and human capital quality shape “local-neighborhood” economic growth using China’s provincial panel data from 1990 to 2017 and an improved Lucas, Nelson & Phelps framework. A Spatial Dubin Model tests spatial effects and shows that high-level human capital, reflected in higher education and urban labor income indices, promotes local growth indirectly through technological innovation. Results also reveal a neighborhood synergy effect, strengthened further after accounting for quality factors.

LanguageEnglish

CategoryResearch & Report

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Pages17

Reading Time43 min

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Introduction

Literature Review

The Mechanism and Direction of Human Capital in Economic Growth

The Impact of Higher Education and Human Capital Quality on “LocalNeighborhood” Economic Growth Ran Zhao, Yuhong Du Beijing Normal University, Beijing 100875, China | Abstract. Based on China’s provincial panel data from 1990 to 2017 and the improved Lucas, Nelson & Phelps model, the Spatial Dubin Model is used to test the spatial effects of higher education and human capital quality. The results showed that high-level human capital, characterized by higher education and urban labor income index, indirectly promoted local economic growth through technological innovation. There was also a “local-neighborhood” synergy effect. The neighborhood effect was manifested in that it affected the economic development ofneighbors by promoting technological catch-up. After considering the quality factor, both the local and neighborhood effects were enhanced. From a regional perspective, higher education in the Yangtze River Delta, where the level of economic development is relatively high, was manifested as a spatial spillover effect of technological innovation and the neighborhood effect in the northeastern Bohai Rim and the Pearl River Delta was manifested as a technological catch-up.
Best Evidence in Chinese Education 2021; 8(1):1041-1057.
Doi: [10.15354/bece.21.ar22](10.15354/bece.21.ar22). | | --- | | How to Cite: Zhao, R., & Du, Y. (2021). The Impact of higher education and human capital quality on “local-neighborhood” economic growth. Best Evidence in Chinese Education, 8(1):1041-1057. | Keywords: Higher Education, Human Capital Quality, Economic Growth, Spatial Dubin Model About the Authors: Ran Zhao, Lecturer, Faculty of Education/Institute of Educational Economics, Beijing Normal University, Beijing 100875, [China. Email: zhaoran@bnu.edu.cn](China. Email: zhaoran@bnu.edu.cn) Correspondence to: Yuhong Du, Professor, Faculty of Education/Institute of Educational Economics, Beijing Normal University, Beijing 100875, [China. Email: dyh@bnu.edu.cn](China. Email: dyh@bnu.edu.cn) Funding: This study was supported by the Ministry of Education’s Philosophy and Social Science Major Research Project (15JZD040) and the Central Government’s Special Fund for Basic Scientific Research in Universities (2019NTSS06). Conflict of Interests: None. © 2021 Insights Publisher. All rights reserved. Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Crea tive Commons Attribution-NonCommercial 4.0 License ([http://www.creativecommons.org/licenses/by](http://www.creativecommons.org/licenses/by)nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed by the Insights Publisher. Introduction FROM 1978 to 2010, the Chinese economy maintained an average annual growth rate of more than 10%, creating a growth miracle that attracted worldwide atten tion. After 2010, the growth rate has gradually slowed down, and the GDP growth rate from 2017 to 2019 was below 7% . The economy has transformed from high-speed growth in the past to medium-and high-speed growth. China’s “demographic dividend” advantage is gradually diminishing. Labor shortage and population aging have gradually become key factors restricting economic growth. As a comprehensive indicator to measure population size, structure, and quality, human capital determines national and regional economic development speed and quality. From 1982 to 2017, the proportion of the population with an associate degree education and above in the Chinese labor force showed a significant upward trend increased from 0.9% in 1982 to 18% in 2017. The decline in the number of labor forces will not be conducive to economic growth, but can the improvement in labor quality make up for the growing gap caused by the decline in the number of labor forces? What is the mechanism and realization path of higher education’s influence on regional economic growth?

FAQs

How does the paper measure the spatial effects of higher education and human capital quality?

It uses China’s provincial panel data from 1990 to 2017 and applies a Spatial Dubin Model within an improved Lucas, Nelson & Phelps framework to test spatial effects of higher education and human capital quality.

What is the main mechanism linking human capital quality to local economic growth?

High-level human capital promotes local economic growth indirectly by driving technological innovation, as indicated by higher education levels and urban labor income indices.

What does the “local-neighborhood” synergy effect mean in the study?

The neighborhood effect operates by influencing neighboring regions’ economic development through technological catch-up, and it becomes stronger when the quality factor is considered.

Oct 15, 2026

Uploaded by Bulrr