Factor Accumulation, Externality and Sustainable Growth ——A Theoretical and Empirical Study of China
ZHANG Xiao-xue1, LI Shi-zheng2
(1.School of Management Science and Engineering, Anhui University of Finance and Economics, Bengbu 233030, China; 2.School of Banking and Finance,Anhui University of Finance and Economics, Bengbu 233030, China)
Abstract：
The theoretical model shows that the economic growth can be sustainable with the following conditions. That the physical capital accumulation provides positive externality and internality, and that the human capital accumulation substitutes physical capital accumulation gradually. Our empirical study with data from 1978 to 2010 confirmed that the model is true in the case of China’s economic growth. It also suggested that the great drop of the positive internality of the physical capital accumulation, which is caused by the unbalanced growth of the human and physical capital accumulation, has led to the slowdown of the actual GDP growth since the middle and later period of the 1990’s. We believe that effective accumulation of human capital is the key to the future economic growth in China.
ZHANG Xiao-xue, LI Shi-zheng.Factor Accumulation, Externality and Sustainable Growth ——A Theoretical and Empirical Study of China[J] Economic Survey, 2015,V32(3): 132-137
2015 
