Higher education expansion and domestic value added in exports: Theory and evidence from China |
| |
Institution: | 1. School of Public Finance and Taxation, Southwestern University of Finance and Economics, 555 Liutai Avenue, Wenjiang District, Chengdu, Sichuan 611130, China;2. School of International Business, Southwestern University of Finance and Economics, 555 Liutai Avenue,Wenjiang District, Chengdu, Sichuan 611130, China;3. Journal of Management World, 4th Floor, Building 1, No. 2 Courtyard, Jintaili, Hongmiao, Chaoyangmen, Beijing 100026, China |
| |
Abstract: | This paper analyzes the impact of China’s higher education expansion on domestic value added in exports. To be specific, we firstly construct a nested CES production function model, with import inputs being complementary to skilled labors, and substitutable to unskilled labors. By exploiting China’s higher education expansion as a quasi-natural experiment, this paper accurately examines the causal effect of the human capital expansion on the domestic value-added in exports. The results show that human capital expansion has negative effects on the domestic value-added in exports, and this result is driven by import inputs increase and processing trade engagement. We also find that the effect is more prominent for processing trade, foreign-invested firms, high-tech firms and disciplines of science and engineering. |
| |
Keywords: | Human capital Higher education expansion Domestic value-added rate |
本文献已被 ScienceDirect 等数据库收录! |
|