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Technological progress and human capital drive industrial restructuring. Human capital

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Area of Science:

  • Economics
  • Industrial Organization
  • Innovation Studies

Background:

  • Industrial restructuring is crucial for economic advancement.
  • Human capital and technological progress are key drivers of this transformation.

Purpose of the Study:

  • To investigate the intricate relationship between human capital, technological progress, and industrial restructuring in China.
  • To analyze the influence mechanisms and identify threshold effects.

Main Methods:

  • Panel Vector Autoregression (PVAR) model.
  • Hansen threshold model.
  • Analysis of China's three major industries data (2008-2022).

Main Results:

  • Mutual causality exists between technological progress and industrial restructuring.
  • Human capital and technological progress exhibit distinct non-linear influences on industrial structure adjustment.
  • Threshold effects of human capital and technological progress on industrial rationalization and advancement were identified.

Conclusions:

  • Both human capital and technological progress facilitate industrial restructuring.
  • Technological progress acts as a threshold, influencing the impact of human capital.
  • Policy recommendations focus on synergistic development of human capital, technology, and industrial structure.