Natural resource dependence, public education investment,and human capital accumulation

This paper examines the relationships between natural resource dependence, public education investment, and human capital accumulation. It addresses why the “blessing” of abundant natural resources often turns into a “curse” in many countries and regions, focusing on the crowding-out effect of natural resources on human capital. According to our empirical analysis of provincial panel data from China, natural resource dependence is significantly and negatively correlated with human capital accumulation. The crowding-out effect of natural resources on human capital exists only in the central and western regions of China. Our introduction of an interaction term for natural resource dependence and public education investment underscores the possibility of investing in public education to reduce the crowding-out effect of natural resource dependence on human capital. The government should utilize the income of the natural resource sector to increase investment in education to enhance local human capital.

An Evaluation of the Investment for Child Development in China

Objective This study estimated the investment in child development from three aspects-public health, public education, and family investment to establish the level of investment, to provide reference information for government decision making and to provide international comparisons. Methods Public investment in health was measured with macro data related to public health spending and child development in government expenditure. Public education investment was based on basic education data. Family investment evaluation was based on per capita family consumer spending data in different age groups to estimate the input for child development. Results Both public health investment level and the proportion of GDP rose for all age groups over time, but the overall investment level was still insufficient. Public investment in children＇s education has increased year by year, but the trends in all age groups are unbalanced with much lower investment in early childhood education. Private investment in children has increased over the period, but has declined as a percentage of GDP. International comparisons show that China＇s investment in child development is much lower than OECD countries. Conclusion The private investment in child development was the main way in China, with public finance contributing only a small proportion. Given the poor international comparisons, the government needs to review the balance of public investment to redirect more towards the development of children under the age of six to their health and education.