Temporal Causality between Human Capital and Real Income in Cointegrated VAR Processes: Empirical Evidence from China, 1960-1999

Abstract

This article examines the causal relationship between human capital and real income using_x000D_ data for China from 1960 to 1999. In the long run there is unidirectional Granger causality_x000D_ running from human capital to real income, while in the short run there is unidirectional_x000D_ Granger causality running from real income to human capital.