Research On Crossing The Middle-Income Trap In The Perspective Of Human Capital

’Middle-income Trap’ becomes a hot issue in both international and domestic fields at present. We notice that China’s per capital GDP broke 3,400 dollars in 2008, which meant, according to the definition of the World Bank, that China already formally stepped in the cortege of middle-income countries. This paper analyses the conception, substance and origin of ’Middle-income Trap’ and summarizes probable incentives which may lead a country to ’Middle-income Trap’. Such as unreasonable industrial structure, unsustainable growth pattern or disadvantageous policies and institutions. These incentives mingle with each other and each of them has a sort of relation with human capital more or less. So, this paper tries to find the inherent relationship of whether an economic entity falls into the ’Middle-income Trap’ and the stock of human capital. We conclude that the though reasons of falling into ’Middle-income Trap’ may point to many factors for the short-term, from the long-term perspective, human capital is the fundamental causation. Because if an economic entity falls into the ’Middle-income Trap’, it means there is some trouble in its economic growth. Meanwhile, human capital is one of the most important part of the endogenous economic growth theory. This paper uses this theory for reference to find out the influential effect that human capital act on an economic entity striding across the ’Middle-income Trap’. This paper uses the discrete choice model doing empirical analysis with 98 countries and more than 300 sets data. The result shows that the human capital largely affects whether an economic entity could stride over the ’Middle-income Trap’.At present, the arguments about crossing ’Middle-income Trap’ mostly focus on the macro level. Most relevant researches are about income discrepancy and the transformation of economic structure. The innovation of this paper lies in starting with the roots of the issue--human capital, analyzing its important function in economic growth and measuring through empirical analysis. This is trying to explore how to stride over the ’Middle-income Trap’ from both the theoretical and empirical aspects. At last, this paper puts forward specific proposals aiming at helping and promoting China to stride across the ’Middle-income Trap’ successfully by enhance the stock of human capital.