Advanced Human Capital Structure, Industrial Intelligence and Service Industry Structure Upgrade ——Experience from China’s Developments

ABSTRACT

This study investigates the relationship between advanced human capital structure, industrial intelligence, and service industry structure based on China’s development from provincial data from 2008 to 2019. It finds that the advanced human capital structure can significantly promote the structural development of the service industry. Meanwhile, there is some heterogeneity in the impact of advanced human capital structure on the service industry. In the eastern region and high level of elemental market development in China, advanced human capital structure has a more significant contribution to the service industry structure upgrade. More importantly, industrial intelligence will play a positive moderating effect on the process of upgrading the human capital structure to the service sector structure. Further, the effect of advanced human capital structure on the service industry’s development depends on the threshold of industrial intelligence. When industrial intelligence exceeds the threshold, it can strengthen the “promotion effect” of advanced human capital structure.

KEYWORDS:

• Human capital structure
• service industry structure
• industrial intelligence
• threshold effect
• China’s experience

JEL:

• O14
• J24
• O33
• L16

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. This implies that the added value of the service industry accounts for 70% of GDP; the proportion of employees in the service industry accounts for 70% of the total employees in all industries; 70% of economic growth comes from service sector growth, and producer services account for 70% of the service industry.

2. These 10 categories include food products and beverages; Textiles, leather, wearing apparel; Wood and wood products; Paper and paper products, publishing& printing; Plastic and chemical products; Glass, ceramics, stone, mineral products; Metal; Electrical/electronic products; Automotive and other transport equipment; All other manufacturing branches.