Leave a reply
Theory, System and Policy Proposals on New Factor Supply for Higher- Stage Development in China
Yuan Fuhua , Zhang Ping, Chen Changbing,
Liu Xiahui and Wang Hongmiao
Research Group of China Economic Growth Frontier, Chinese Academy of Social Sciences, Beijing, China
Abstract: By introducing the knowledge sector, this paper has structurally redefined
the production function and on such a basis, analyzed the role of new factor supply in
China’s economic transition and reached the following conclusions: 1) The supply of new
production factors represented by knowledge sector has become the dominant force that
decides whether China can overcome the barrier of structural deceleration, and achieve
sustained growth and stride into a higher stage of development; 2) In the context of rising
urban household income and upgrading demand, the knowledge sector has emerged,
encompassing science and technology, culture, health and sports that contribute to
enhanced “human capital in the broad sense”, and the production and consumption process
of the knowledge sector is also the process of human capital improvement and endogenous
innovation; 3) Aside from its endogeneity, the knowledge sector creates spillover effects that
will revitalize traditional industries and services, remove the barriers between consumption
and production, and promote structural transition and economic upgrade for innovation-
driven growth; 4) In the context of flagging growth driven by material capital, great
importance should be attached to the contribution of consumption to human capital in the
broad sense and promote the interactive upgrade of consumption and production structures,
which are the key to overcoming the bottlenecks of development.
Keywords: consumption structure, human capital in the broad sense, knowledge sector,
integrated production and consumption
JEL Classification: O34
