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IZA DP No1. 2703Human Capital, Economic Growth, and RegionalInequality in ChinaBelton FleisherHaizheng LiMin Qiang ZhaoMarch 2007Forschungsinstitutzur Zukunft der ArbeitInstitute for the Studyof LaborDISCUSSION PAPER SERIES Human Capital, Economic Growth, and Regional Inequality in China Belton Fleisher Ohio State University and IZA Haizheng Li Georgia Institute of Technology Min Qiang Zhao Ohio State University Discussion Paper No. 2703 March 2007 IZA P.O. Box 7240 53072 Bonn Germany Phone: +49-228-3894-0 Fax: +49-228-3894-180 E-mail: iza@ Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. IZA Discussion Paper No. 2703 March 2007 ABSTRACT Human Capital, Economic Growth, and Regional Inequality *in China We study the dispersion in rates of provincial economic- and TFP growth in China. Our results show that regional growth patterns can be understood as a function of several interrelated factors, which inc