Impact of Production, Consumption Capabilities and Human Capital Capacity on the National Wealth of China

Abstract

The recent improvement of China’s national income has been a global phenomenon due to the uncertain financial and economic conditions. Hence, the current research investigates the impact of production and consumption capabilities and human capital capacity on the national wealth of China. This study uses secondary data from secondary sources, including the World Bank Indicators (WDI), from 1991 to 2020 to examine the stationarity of the constructs using the augmented Dickey–Fuller (ADF) test. It also investigates the association among the variables using the autoregressive distributed lag (ARDL) model. The results revealed that production and consumption capabilities and human capital capacity are significantly and positively linked with the national wealth of China. This study provides guidelines for regulators as they establish policies regarding national income improvement using production, consumption, and human capital factors.