Relationship Between Education Investment and Economic Growth
|School||Zhejiang University of Finance|
|Keywords||Total Investment on Education The Structure of Educational Envestment Economic Growth Panel Data|
With the development of economic globalization, international competition becomes increasingly fierce, the level of education and technology as an important factor in economic growth have become the focus of international competition. International competition is mainly focused on the technological level and the level of human capital, while investment in education is to train high quality professionals and develop new technologies, and education investment is also an important driver of economic growth, so the role of role education investment to economic growth caused the attention of many countriesA large number of economists has studied the relationship between education investment and economic growth. Through the research, they found that education investment and economic growth were interdependent and mutually reinforcing. On the one hand, education investment to economic growth plays an important role. Investment in education can improve the human capital stock, in order to promote the optimization of human capital to promote economic growth; investment in education can also develop new technologies, improve the management of science and so to promote labor efficiency, thereby improving productivity through the promotion of economic growth; In addition, investment in education also has a wide range of comprehensive benefits, such as improving labor standards and moral, and cultural qualities to indirectly promote economic growth. On the other hand, economic growth provides a strong material foundation to education investment. Education is an investment which isclosely linked with socio-economic activities, and the level of economic growth determines the the level, the scale and the goals of education investment.At present, China’s education has made great progress, and the country’s economic strength has also been greatly improved. But compared with other international countries, China’s productivity and level of education is still relatively backward. Although China has abundant labor resources, but the technological level of China’s labor force and cultural qualities is relatively low, and how to turn the heavy population pressure into huge human resources is a breakthrough in China’s economic development. Since the reform and opening-up, China has increased investment in education, but that is not enough, and the structure of educational investment is not perfect. Economic development across the country are very different, how to protect the fairness of primary education and how to make level of education the actual situation around the region to adapt to local conditions are the focus of this paper.In this paper, we use theoretical analysis and empirical research to study the relationship between education investment and economic growth. We analysed the relationship between education investment and economic growth by the provincial panel data. Through theoretical analysis and empirical research, we analysed the contribution of education investment to economic growth, and investment in education for our current situation and problems existing in the corresponding countermeasures and suggestions. And we make some countermeasures and suggestions on the current situation of education investment and the problems existing in the corresponding .