THE IMPACT OF PRODUCTION AND CONSUMPTION CAPABILITIES AND HUMAN CAPITAL CAPACITY ON THE NATIONAL WEALTH OF CHINA

Abstract

Recently, improvement in the national income has been a global occurrence due to the uncertain financial and economic situations that necessitate 'researchers' concern. Hence, the current research explores the impact of production and consumption capabilities and human capital capacity on the national wealth of China. The present research has employed secondary data from secondary sources such as World Banks Indicators (WDI) from 1991 to 2020. The current study has analysed the stationarity of the constructs using Augmented Dickey-Fuller (ADF) test and also explores the link among variables using autoregressive distributed lag (ARDL) (ARDL). The results demonstrated that production and consumption capacities and human capital capacity have considerably and favourably associated with the national wealth of China. This study has offered the guidelines to the regulators when building the policies regarding nation income enhancement employing production, consumption, and human capital variables.