The Economic Impact and Determinants of Investments in Human and Political Capital in China

Posted: 12 Feb 2003

See all articles by Zhiqiang Liu

Zhiqiang Liu

SUNY at Buffalo, College of Arts & Sciences, Department of Economics

Abstract

This paper analyzes the roles of human capital and political capital in income determination, and the determinants of investment in these two types of capital in China. Political capital is treated as a distinct form of capital, which is accumulated through investment and commands a return. The empirical evidence reveal that (1) both human and political capital have positive and significant effects on individual and household income as well as the welfare of the family; (2) parental income is an important determinant of educational attainment of today's generation; and (3) the political capital endowment of a person's family, his occupational choice, and economic gains are crucial factors influencing investment in political capital.

Keywords: Human capital, Political capital, Income distribution, China

JEL Classification: J24, O25, P3

Suggested Citation

Liu, Zhiqiang, The Economic Impact and Determinants of Investments in Human and Political Capital in China. Available at SSRN: https://ssrn.com/abstract=352680

Zhiqiang Liu (Contact Author)

SUNY at Buffalo, College of Arts & Sciences, Department of Economics ( email )

Buffalo, NY 14260
United States

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