Analysis Of Human Capital Factors Across The Middle-income Trap In Japan

In 2006,the World Bank described the Middle Income Trap in the ?EAST ASIAN VISIONS: Perspective on Economic Development?as: Middle income countries can not enter the ranks of high income countries for a long time,they can not compete with low income countries in wages,and they can not compete with high income countries in technology,which leads to the emergence of the middle income trap.So far,only a few countries have been successfully transformed.Most of these countries are in the middle income stage,but they are unable to succeed in transformation.In 2010,China's per capita GDP exceeded 5000 dollars.According to the world bank standard,it has entered the ranks of the "upper middle income" economy.In 2017,China's per capita GDP exceeded $8800.With the increase of per capita income,China is facing many challenges such as upgrading of industrial structure,technological innovation and demographic dividend.According to international experience,if we cannot solve these difficulties in time,we may fall into the middle income trap.In the early stage of industrialization,the main factors to promote economic growth are physical capital and labor.In the era of knowledge based economy,human knowledge and ability become the key of economic transformation,and the influence of human capital on economy is bigger and bigger.Japan is a typical country that has successfully crossed the middle income trap.The measures and achievements in the middle income stage can provide good experience for our country.The role of human capital in the period of Japan's economic transformation is remarkable,which has laid the foundation for Japan's economic progress.Therefore,this paper analyzes the influence of human capital on economic growth in the process of Japan's middle income trap.This paper summarizes the experience of human capital in the middle income stage of Japan,and gets the inspiration for China to cross the middle-income trap.Based on Lucas' s externality endogenous growth theory,this paper analyzes the human capital factors in the process of Japan's middle income trap.Insufficient material capital investment,unrealized transformation and upgrading of human capital,low total factor productivity and low labor productivity are the reasons for the formation of middle income trap.Human capital factors affect the economic growth of a country by influencing labor productivity,industrial structure and total factor productivity.In the process of crossing the middle-income trap,Japan attaches importance to the role of human capital.Japan improves human capital level by optimizing educational structure,optimizing gender structure and optimizing human capital industrial structure.Japan has made use of the population growth and the demographic dividend of the population structure to make human capital factors synergistically with labor productivity,industrial structure and total factor productivity to promote economic growth.Through the empirical analysis of the endogenous production function model of this article,it can be seen that the level of human capital in Japan has a significant role in promoting economic growth,and human capital is the key factor of economic growth.Japan attaches importance to human capital in the process of crossing the middle-income trap.Japan uses policy to ensure the improvement of educational level,increase human capital investment and improve human capital level,and adjust the structure of human capital industry to promote economic structure transformation.With the increase of per capita income,China is beginning to face the test of whether it can cross the middle income trap,but there are still many problems to solve.Our country wants to cross the middle income trap,one of the important contents is to pay attention to the role of human capital,to optimize the structure of human capital and to improve the level of human capital.This paper argues that human capital is the key factor of economic transformation and upgrading for a country to cross the middle income trap.By attaching importance to the development of education,improving the labor market and improving the level of human capital,it can provide intellectual support for a country to cross the Middle Income Trap and inject the source and vitality into the future economic development.Only by attaching importance to the development of human capital can the country have the power to achieve sustainable economic growth in the process of economic transformation.