【正文】
ors find that the returns to education above the elementary level by region are Direct Indirect Coastal Northeast Far West Interior National These are very significant numbers. The authors argue that human capital affects output in three ways: 1. Educated labour directly contributes to production 2. The proportion of workers with senior high school or above directly affects TFP growth via its effect on innovation. 3. There is an indirect spillover effect of human capital on TFP growth. The overall conclusion of the paper is that human capital investment in lessdeveloped areas can enhance economic efficiency and reduce inequality. They argue that the Grand Western Development Project which involves enhancing infrastructure in 11 western provinces should be doubled to provide equal funding to human capital investment and that this will do more to reduce inequality than infrastructure alone. The second paper looks at innovation activities in different provinces in China and tests whether education differences are able to explain differences in innovation. Endogenous growth theory says that human capital is one of the factors that drives growth and that it does so through innovation activities. Thus regions that are richer typically have higher levels of educational attainment and are able to use this to further innovation activity and grow even faster as a result. Based on the statistical analysis in this paper, the main conclusions are: 1. Innovation activities significantly increased across China from 19972020. 2. The spatial spillovers of innovation activities also rose – a neighboring province effect. 3. The % of collegeeducated workers is a significant predictor of regional innovation intensity. 4. Over time the impact of education on innovation has decreased. The third paper in this section looks at some further aspects of human capital in a regional context. The paper by Fu and Gabriel is concerned with internal labour migration in China and how this