Vector Analysis Of Human Capital and Agriculture in China

English

Abstract

This study examines the impact of the direction of the relationship of education and health development in China on agricultural development efforts in China. This study using vectors which are generally used in a-theory research so that human capital theory is used as a determinant of key factors, not as the basis for econometric equations. The results of the vectoring carried out in this study can be described through the estimation of the IRF (impulse response function) estimation. The next step is to forecast the influence of each variable in the form of a forecasting graph so that it can be seen clearly the combination of the direction of the relationship or the influence of each variable. We found that education and health investment has a positive relationship with agricultural performance which was driven by agricultural performance in the previous period and negatively related to employment in agriculture. However, from this it can be seen that productivity which is the result of developing human resources through education mechanisms is getting bigger. Where labor productivity increases over time. However, looking at the graph of labor absorption in the agricultural sector which continues to decline very sharply, it becomes a threat in itself in the future. Because there is a decline in performance in the future due to labor shortages and it is possible that the agricultural sector will be completely destroyed when there is a shortage of labor in this sector if the interest of the China youth in the agricultural sector is not invested..