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Human capital and growth. China’s role.

Human capital counts, even in China. The dimensions are different, obviously, but the problem of workers’ wages and, above all, of their qualification is also being felt in Asia. Even in China, despite what we would be led to think. The question reveals, there as in other production areas, varyingly strong possibilities of economic growth. This is the demonstration of the importance of corporate culture in respect of the prospects of well-being of a country.

It’s therefore interesting to gain a closer understanding of the situation in China, and important for a better understanding of the contacts of many Italian companies. Even if the relationship between human capital and business in China is a complex subject, involving corporate culture in general and the Chinese one in particular.

Four Chinese researchers, spread however between Beijing, Cambridge and Nottingham, have given an updated, and merciless, picture of the situation in an article which in a reduced space provides an up-to-date analysis and history of the condition of Chinese workers.

Inequality, human capital and innovation: China’s remaining big problems by Wu D. (University of Cambridge), Wu Z. (Nottingham Business School, Trent University), Wang J. (School of Contemporary Chinese studies, University of Nottingham) and Zhao Z. (School of Labour and Human Resources, Renmin University of China, Beijing), published in the International Journal of Economics and Business Modeling, opens with a brief summary of literature on the topic and then moves on to an analysis of the effects on inequality of the economic reforms implemented in recent years. A thorough description is then given of the wage and benefits policies aimed at workers, policies which reflect and fully explain the type of corporate culture present in the country.

Above all, however, there’s the future. For the four authors, if the key to growth also lies in technological innovation in China too, this involves a human capital with better pay and education. Without these conditions it is forecast that economic growth in China will be destined to have many problems. Or rather, even more so. If, the article adds, China does not taken into serious consideration the problem of inequality of income of disadvantaged groups of people, it is possible to foresee such political imbalance as to derail economic growth in the country.

All in all, China has opened up to the west but it may have to be viewed in a different light than usual.

Inequality, human capital and innovation: China’s remaining big problems

Wu D., Wu Z., Wang J., Zhao Z.

International journal of economics and business modeling, volume 5, Issue 1, 2014, pp. 233-237