Research On Influence Of Education Expenditure On Economic Growth Based On The Spillover Effect

Since the 1990s, education has made significant contributions to economic growth and social progress. The educational investment of government, society and individual propel education forward directly. The increase of education expenditure contributes to human capital accumulation and technical innovation, which influences sustained and rapid growth of economy. However, disequilibrium of educational resource allocation, imperfect of education system and market imperfections lead to spillover on education expenditure incomplete. Therefore, it has important significance to study the influence of education expenditure on economic growth based on spillover effect in theory and practice.Based on educational economics and some other discipline theories, this paper studies the influence of education expenditure on economic growth under the spillover effect in China by comprehensively using various research methods. At the beginning, this paper introduces the basic theories of education expenditure, spillover effect and economic growth. Following that the current status of education expenditure and economic growth are explored. And then it establishes measuring model of spillover effect by using the data of 1991-2007 to research the influence of education expenditure on economic growth under the spillover effect. Finally, it draws basic conclusion and puts forwards some policies and suggestions.The main conclusions of this paper are as follows: according to the theory of human capital, modern economic growth, education expenditure have a significant effect on economic growth; total expenditure on education and GDP has continued to increase, but the development in regional is imbalance; view of long-term, education expenditure there is a positive effect on economic growth, but the scale of the expansion of education spending is not the role of education in the whole society of human capital accumulation and technical progress.The main innovative points of this paper are as follows: firstly, studies the influence of education expenditure on economic growth systematically and thoroughly by selecting educational expenditure and economic growth as the research object; secondly, it empirically examines the influence of education expenditure on economic growth under the spillover effect by using the regression Model with the data of 1991-2007.