The Empirical Research On The Contribution Of Education To Chinese Economic Growth

A country's economic growth which expressed by its per capita GDP or GDP growth is studied by the macroeconomics, many economists try to interpret its cause, mechanisms and path. From Solow (1956) to Lucas (1988) endogenous growth model, both elaborate economic growth. According to western economics, production factors are divided into land, capital, labor and entrepreneurship.Economists believe that capital and labor have the greatest impact on economic growth through the CD production function which describes the economic growth. They obtain the impaction of capital and labor changes on economic growth, and the unknown factors attributed to technology which is a exogenous variable. Exogenous factors play an increasing role, so economists begin to research it. They think that technology is the product of human intelligence that can be quantified and endogenous. It increase labor productivity of workers, different people have different as science and technology through combining with the labor. Different people have different technology which leading to different productivity rate. This is human capital. Therefore, human capital is introduced to economic growth model by the economists as a more important factor of productionSince 1978, China implemented reform and opening up has made great economic development and improved people's living standard. Our country has turned into market economy with Chinese characteristics from a highly centralized planned economic system of socialism. People's living standards shift from basic well-off to subsistence level. We played an important role in global business system. The China's average annual GDP growth is 10% in the 30 years which makes China the fastest growing economies in the world. We have the fastest and longest recorded in the history of human development. At the same time the international community begin to suspect whether China can continue in the foreseeable future. The U.S.A economist Krugman (1994) pointed out:In 20 years, Chinese living standards have improved 4 times than before. It is the first in human history. But Asia's remarkable economic growth does not have remarkable productivity growth. Its growth is the result of input of resources rather than efficiency improvement. According to the law of diminishing marginal productivity of capital, the output growth will decline. So China's economic growth is not sustainable. These words is particularly striking in the context of the global financial crisis.Education influences the economic growth indirectly through the promotion of human capital which provides idea to us. In this paper, the education was introduced into our economic growth model through Mankiw, Romer and Weil model. Then we can directly calculate the contribution of education to China's economic growth rate. Compared with the education contribution rate of developed countries, analyzed the reasons for the low contribution of education in China and put forward policy recommendations to provide the theoretical basis and reference for education sector.