Exploring the Nexus between Exhaustible Human Resources and Economic Development in China: An Application of the Hotelling Model

Abstract

This paper applies the Hotelling model to the context of exhaustible human resources in China. We find that over-exploitation of human resources occurs under conditions of restricted population mobility, rigid wage levels, and increased foreign trade demand elasticity. Conversely, the existence of technological replacements for human resources or improvements in the utilization rate of human resources leads to conservation. Our analysis provides practical insights for policy-making towards sustainable development.