China's total real human capital increased from 26.98 billion yuan in 1985 (i.e., the base year) to 118.75 billion yuan in 2007, implying an average annual growth rate of 6.78%. The annual growth rate increased from 5.11% during 1985-1994 to 7.86% during 1995-2007. Per capita real human capital...

We model investment in entrepreneurial human capital (EHC) - the representative enterprise's share of production capacity allocated to investment in innovative industrial and commercial knowledge - as a distinct channel through which firm-specific human capital drives endogenous growth. Our...