Empirical Study On The Effects Of Education Investments On Economic Growth Based On Hainan Province

As China's youngest province and the biggest special economic zone, Hainan has the unique geography resources and policy advantage, but its economic development is slow. The reason depends on many factors, of which insufficient education investment and shortage of human capital play important role. Along with the Hainan's economy development, the lack of high-quality talent restricts the rapid economic development. On December 31 2009, the state council approved . The constructing of Hainan international tourism island becomes national strategy, which means Hainan ushered in the opportunity of development again.According to the requirements of the scientific development concept, adhering to the people-oriented strategy, this thesis uses the theories of economic growth and human capital,puts the education investment into the production function as an important factor,and studies the relationship between education investment and economic growth, investigates current situation of the education investment in Hainan, analyzes the contribution of education investment to the Hainan's economic growth between 1982 and 2008, and proposes some counterpart suggestions to the existing problems at last.The framework of this paper is as follows:The first chapter is introduction. It introduces the problem's background, the research significance, the research situation, and the study frame.The second chapter is education investment for economic growth. It analyzes the characteristics of education investment, the education investment research on economic growth mechanism of action.The third chapter is the economic development and education investment of Hainan province. It introduces the current situation of economic, and the opportunities for Hainan province based on the international tourism island construction. Then it analyses the present situation of Hainan province education investment, and its influence on the economic development.The fourth chapter is model building and empirical analysis. It describes the present situation of Hainan province education investment, and according to the existing theories, establishes mathematical models of education investment introduced into the production function, using the data of Hainan province, and an empirical analysis of the test results proved that education investment on economic growth has significantly positive effects.The fifth chapter is policy suggestions, theoretical and empirical analysis fully displays the important value of education investment. It puts forward the corresponding policy suggestion, including insuring education is preferred, enhancing the education investment, encouraging private education development, enriching the vocational education and higher education, accelerating the development of service industry, etc.