China And The Asian Economic Wonder: What's The Secret?

English

Abstract

This study uses the human capital index which is measured based on current labor force income to measure the contribution of the quantity and quality of the workforce. Measuring accurately the contribution of various factors to economic growth, especially the contribution of the quantity and quality of labor, is very important in the current context. The extent to which an aging population and consequent labor shortages will affect the future trends of China's economy is also of great concern to academics and policy-making departments. This research contributes to a deeper understanding of the long-term sustainability of the Chinese economy and the sources of future economic growth. This study uses the ARDL approach with secondary data sourced from the world bank. The research period used in this study is from 2000 to 2021. The result of this study is the contribution of technology and human resources to China's tremendous economic rise where China's economic progress is inseparable from the quality of human resources in Chinese society as indicated by the human capital index. In addition to human capital, the technology available and imported by China is the backbone of increasing China's productivity economically. However, the quantity of labor and financial capital stored in banks throughout China has only been a short-term support for China's economic development in terms of production output in the real sector.