Research On The Interaction Between Educational Investment And Economic Growth In China

The interaction between educational investment and economic development is one of the key factors for China's harmonious strategy today. Based on the historical and current analyses, this dissertation aims to conclude the interactive mechanisms of educational investment and economic development, find the adverse factors to baffle the well-balanced relationship between those two main bodies.The relationship between educational investment and economic development not only includes the quality relationship, but also the structural relationship, and institutional factors are the key roles in determining the relationships. The interaction between educational investment and economic development comes from the relationships of investment and output, production and distribution, supply and demand. In the realized world, this means the economic development determines the amount and structure of educational investment, on the other hand, the educational investment determines the amount of human capital, and determines the speed and volume of economic development, and those relationships are dynamics.The styles of interactions between educational investment and economic development are divided into four kinds: benign interaction, malign interaction and two ordinary interactions. Benign interaction means fair and proper educational investment brings lasting and steady economic development, and economic development promotes the educational investment. The malign interaction means low level of educational investment brings low level of economic development, and too large investment gaps among different regions bring unbalanced economic development. To realize the benign interaction, one must constitute proper institutional conditions, structural conditions and policy conditions.Based on those theory backgrounds, this dissertation tested the empirical relationship between educational investment and economic development during the period of 1952-2004 in China. Results show that the educational investment and economic development are cause and effect for each other. The elasticity of educational investment to economic development is 0.91, which means 1 percentage of educational investment will bring 0.91 percentage of economic growth.Economic transferring is a special phenomenal during China's economic development. This dissertation analyses the difference of relationships of educational investment and economic development between two periods. Before economic transferring, the economic development depended on the heavy industries, and the educational investment were monopoly; After economic transferring, educational investment has promoted the economic development, but the effects are unbalanced between regions and rural area and urban area.To construct the benign interaction between educational investment and economic development, several measures are put forward in the last part of the dissertation. Thos include establishing proper conceptions about educational investment, promoting the co-investment mechanism of government, society and individuality, optimizing the governmental investment structure, actualizing the lawmaking of educational investment, transferring the manner of economic development and optimizing the allocation of human resources.