Resource Dependence and Human Capital Investment in China

The China Quarterly, vol. 221 (March 2015), pp. 49-72

25 Pages Posted: 14 Jul 2012 Last revised: 20 Jul 2016

See all articles by Jing Vivian Zhan

Jing Vivian Zhan

The Chinese University of Hong Kong (CUHK) - Department of Government & Public Administration

Haiyan Duan

East China University of Political Science and Law (ECUPL)

Ming Zeng

Nanchang University

Date Written: 2015

Abstract

Countries endowed with rich natural resources such as fuel and minerals often fall behind in human development. Does resource endowment hamper human capital development in China, a country that hosts rich resources in many of its regions? Through cross-regional and longitudinal statistical analysis and field research in selected mining areas, this study finds that resource dependence decreases government expenditure on human capital-enhancing public goods including education and health care. The local economic structure and decreased demand for labor, the shift of government responsibilities onto mining enterprises, and the myopia of local residents and officials all discourage the local governments in resource-rich regions from investing in human capital.

Keywords: China, curse of natural resources, human capital, local public goods provision, mixed research method

Suggested Citation

Zhan, Jing Vivian and Duan, Haiyan and Zeng, Ming, Resource Dependence and Human Capital Investment in China (2015). The China Quarterly, vol. 221 (March 2015), pp. 49-72, Available at SSRN: https://ssrn.com/abstract=2106457

Jing Vivian Zhan (Contact Author)

The Chinese University of Hong Kong (CUHK) - Department of Government & Public Administration ( email )

Department of Government & Public Administration
The Chinese University of Hong Kong
Shatin, N.T.
Hong Kong

HOME PAGE: http://www.gpa.cuhk.edu.hk/en-gb/people/academic-staff/faculty/prof-zhan-jing-vivian

Haiyan Duan

East China University of Political Science and Law (ECUPL) ( email )

1575 Wanhangdu Rd.
Changning, Shanghai 200042
China

Ming Zeng

Nanchang University ( email )

999 Xuefu Avenue
Hong Gu Tan New District
Nanchang, Jiangxi 330031
China

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