Business Review


We analyze forecasts concerning China’s growth slow-down and future prospects concerning its economic performance. Extending the discussion on China’s possibility of going through a slow-down in future, we focus on the avoidance of such a possibility by drawing forth the role of gross capital formation, trade openness, higher education enrollment ratio, higher education expenditure, R&D expenditure, population growth and number of inventions in determining per capita income. These non-conventional determinants: number of inventions, government R&D expenditure, higher education enrollment ratio and higher education expenditure, show not only significantly positive link with per capita income but also exhibit strong explanatory power in determining per capita income. We apply several techniques (robust regression analysis, Driscoll and Kraay (1998) method, Fixed effects, Random effects estimations and Arellano-Bond GMM estimation) to analyze the sensitivity of our results which show that our variables of interest are robust to heteroscedasticity, autocorrelation of type MA(q), and contemporaneous cross-sectional dependence.


Per capita income, Growth slow-down, Higher education, R&D expenditure, inventions



Journal of Economic Literature Subject Codes

O1, O2, O3

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published Online

March 30, 2021



Publication Stage



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