The Economic Effects Of Educational Investment

With the development of knowledge economy and the progress of economic globalization, more emphasis on information and knowledge, knowledge has become another important production factor after labor, fixed asset investment and land. The rapid development of science and technology and its constant transfer into productivity have become the most active factors and most significant driving force for the development of economy and society. The key to the promotion of science and technology, and mastery of them, bringing them into play is human being. Only the human being educated and trained with certain knowledge and skills can promote the development of science and technology, and reveal the effects of education.From the perspective of educational investment, this paper makes a discussion of the economic contribution effect of education, the education pull-effect and the education equity effect, and proposes to enhance the performance management of educational investment, establishing a performance-oriented education funding mode; We should implement the operating budget of education cost based on strategic objectives and the system motive-oriented education quality audit; We should make such assurance measures to promote the economy as constantly adjusting the specialty structure according to the industry structure. Taking the regional economy in Jiangsu Province as the research object, the paper uses the cross-spectral analysis method and gray correlation degree method based on the entropy, carrying out a quantitative analysis of education pull-effect on economy. All these verify from the data on the existence of the education pulling effect on the economy in Jiangsu Province, supporting the theoretical elaboration of education's economic role.Taking Jiangsu Province as a sample, the paper uses a total of 18 years'data from 1990 to 2007, demonstrating the economic pull-effect of education. It measures the pull-effect sensitivity of many factors with the system dynamics, getting comparatively ideal results. The paper uses neural network simulation method to simulate the education economy policy.The paper makes an empirical analysis of the education equity effect, recognizing that the education fairness, human capital accumulation, resident income and regional GDP are closely related. It also calculates the average Gini Coefficient of the education: 0.244661, which is at a medium level across the country. indicating there is a big gap in the distribution of education fairness in Southern Jiangsu and Northern Jiangsu. The general education fairness in Southern Jiangsu is higher than that in Northern Jiangsu. It also puts forward relevant policies and suggestions. The paper makes use of the Gray Correlation Method to calculate the lateral correlation between the educational and economic indicators in Jiangsu Province, thinking all the factors of education and economy in Jiangsu Province have strong correlation, and a number of factors have a high degree of interdependence, indicating that in Jiangsu Province the educational development and economic development impact each other with unity, and the development between education and economy is coordinated. At the same time, it use the Data Envelopment Analysis Method to calculate the investment output rate of education in Jiangsu Province, getting that the technical efficiency and pure technical efficiency of education investment output occur troughs in the year 2000, and rise year on year after 2000, while the scale efficiency was declining year on year. The analysis believes that investment in education is difficult to achieve effects in the short term, and it takes over-decade transformation to play out the effect. Only by way of increasing the investment output rate can we maximize the economic effects of education and promote the continuous development of the economy.At the same time, taking higher education as an example, this paper uses the Balanced Scorecard Theory to design the performance evaluation index system for colleges and universities from four dimensions including finance, customer, internal business process, and learning and growth, bringing forward the construction of performance-oriented education allocation mode.It considers that the cost budget of higher education should be based on operation analysis, workflow transformation must be conducted, unnecessary operations should be eliminated, principal component analysis method shall be used to analyze the higher education cost drives, and cost-return budget should be conducted, establishing budget method of higher education cost operation based on strategic objectives.Starting from the importance of education quality, this paper points out education quality audit should be enhanced, establishing such education quality audit based on systematic drive.It puts forward specialty restructuring proposal: to develop application-oriented talents closely integrated with the local economic construction, to adjust discipline structure based on comprehensiveness, forming the discipline structure adapted to the needs of industrial restructuring with a wide range of disciplines.