The Contribution Of Education Investment To Chinese Economic Growth

Education investment theory was proposed in the research of the cause of economic increase by the western economist .From 80's of this century, our nation pay more attention to the development of education, increase the educational investment, which gives rise to a new research area, that is, the effect of education investment to the economic growth. This paper focuses on the estimation in this research area.Based on Feder's model and the hypothesis of the difference of the marginal factor productivities between education departmental and non-educational department and the marginal factor productivities of educational department are higher than non-educational department. This model has three functions: first, estimating the contribution of education investment to economic growth; second, estimating the direct and indirect contribution of education investment to economic growth;finally, estimating the ratio of marginal factor productivies in the two sectors. Meanwhile this model also can be used to study the action way and character of economic increase caused by different educational investment objects, and also can provide theory basis to the investment policy and measure of sustainable education development.To verify the hypothesis of the model, this paper analyzed the contributing of educational investment to economic increase of our country from the year 1990 to 2003. We get the estimation model by collecting data and imitating with the SPSS software. The estimation proves the hypothesis of the model and supports the policies of developing education by the government, also provide the theoretic guide of our future educational investment.