The Effect Of Educational Investment On The Development Of Economy

The relation of the education investment and the economical growth always is the important topic. In the later period of 20^th century, education investment, as one of the important factors, becomes popular in the academic field. Moreover many experienced studies also unceasingly confirm that the education investment has important contribution to national economy development. Since the reform and open policy, every province (city) of our county increases the education invests. Since the education investment has the very major function to the local economical development, and then the difference of education invest inevitably also one of the important factors which cause the economy different in the regions. However, in present, the studies only use the difference of education degree to explain the difference of regional economy development. Obviously, this is not enough. Education as the main factors of economy development, the effect of development scale and structure also is the effect mechanism to cause regional economic development.First, the article introduces the concept of education invest, the relation of education invest and economy increasing;second, utilization massive statistical data to show present situation, and compare to national standards;moreover, the relation between education invest and economy development is demonstrated, to weight the regional difference of education development, study the acceleration effect of education to economy and social development, analysis the main reasons of regional difference of the education development, and put forward the policy and suggestion by the statistical data, the metrology method such as Granger Causality test, cointeration test.The increase education investment is helpful in promoting our country actual economic output growth, but reducing the education investment will restrict our country actual economic output growth. There is some interaction balance relation between the education investment and actual economy growth, and there is a high correlation between them. So we should realize the importance of education investment to economic growth, and try to change the shortage problem of education investment, and form the benign recycle between the education investment and theeconomy. It has the extremely important strategic sense in our county.