Empirical Research On Relationship Between Educational Investment Structure And Economic Growth

Following the classic Solow model of economic growth, MRW model written by N. Gregory Mankiw,David Romer and David N. Weil added the human capital in Solow model can explain the differences in national development issues, which not only attracted scholars from various countries on the Human Capital Research attention, but also enables governments emphasizing on investment in personnel training in economic development, Human capital in economic development of countries in the growing role. The reform and opening-up policy has made Great achievement in China. But at the same time, we have made tremendous sacrifices in environment and natural resources. In order to achieve sustainable economic development in China, the Government has gradually importance of human capital on a huge role in promoting economic development. Human capital is invested by the government at all levels of education achieved in our country. However, since the university expansion in 1999, the number of students in university expanded nearly 15 times than the number of vocational students, which increasingly makes the issue of Graduate Employment to become the focus of public, at the same time, technical talent is in short supply in some parts of China. It also makes the structure of educational investment in China has great practical significance.This article basing on the model of the MRW references on the approach about technology invented by Paul M. Roomer and others. We join technology into the model and take the basic education investment, vocational education investment, university education investment and R & D sector investment as the factors of our human capital on the basis of the actual situation of China's education system, and then Analysis of steady-state in the form of C-D function. Afterwards we make a empirical analysis using Chinese data, in order to study The effectiveness of economic growth on various types of educational investment in China and investment in physical capital. This paper is divided into five parts:Part 1 is an introduction, which briefly introduces the research background, significance and the research methods used in this article, and finally briefly discussed the chapter about the structure of this article.In Chapter 1, the paper first introduces the current situation in our country's human capital. Our human capital is mainly invested by the governments at all levels of education achieved, as China's economic development played an important role, however, enrollment of higher education since 1999, the annual increasing number of university students is 14 times as many as the number of students vocational education. The serious imbalance in the ratio of investments leads to a series of social problems, and then we propose the need for emphasis on education investment structure.Then respectively demonstrate related theory of human capital from domestic perspective and international perspective . In1956 Solow and TW Swan presented the classical model of economic growth, in the next year Jacob Mincer dissertation in the first to use the "human capital" concept in his doctoral. Henceforth, Theodore W. Schultz, Edward Fulton Denison and Gary S. Becker are all in the human capital contribution to economic growth have done a lot of research.In1992 N. Gregory Mankiw, David Romer and David N. Weil introduced human capital variable into Solow model. And the empirical analysis of the model greatly improved the predictive power. Hereafter much research has been carried out by Ben S. Bernanke and others On the basis of the MRW model. Domestic human capital theory of a late start, but through the efforts of our scholars, Under China's national conditions of human capital has made great achievements. But because of China's statistical system established later, and the study of human capital data is exile seriously, which also limit the development of our human capital theory.Chapter 2 introduces the Solow economic growth theory, and then we have introduced the extending of Solow model invented by N. Gregory Mankiw and others. And finally basing on the MRW model, we introduce technological progress and the factors of China's human capital formation that is our investment in basic education, investment in university education and investment in vocational education. At the same time we also refer the physical capital, human capital, and technological progress of the steady-state path invented by N. Gregory Mankiw and Paul M. Romer and others to the economic growth model, and analyze influencing factors of per capita output under steady state conditions.Chapter 3 is the empirical analysis section about human capital investment on economic growth. This section is based on the extension of the MRW model introduced in previous chapter, firstly introduced variable settings. In this article we select relational data from 1996 to 2007 on Economic Information Network Database, and discount the data Using 1995 as base. At last we set six indicators which are real per capita output (GDP), per capita investment in fixed capital (K) The per capita R & D Investment (IRANDD), per capita investment of university education (DXJY), vocational education investment per capita (ZYJY), basic education per capita investment (JCJY). The original time series are Non-stationary, so I chose to estimate the utilities of all types of investment to all types of investment by vector error correction model, which found that per capita investment in China's university education for the negative effect of output, second only to our investment in R & D sector. At the same time vocational education investment which have been neglected by our government recent years has a significant positive effect to output, which indicate that the state of university education have a tendency to excessive investment.Subsequently we analyze impulse response analysis and variance analysis of various investment variables to capita output, finding that there is bidirectional Granger causality between per capita fixed investment and output. Fixed assets investment per capita is only short-term effect on output per capita, so is vocational education investment. Basic education investment impulse response to capita output are always positive and gradually increasing, while research departments and university education departments shocks to outputs are always negative, but their capita production out impact variance are the greatest contribution.Part 5 is the conclusion. At this part, we draw on education-related research by Gary S. Becker, and Spence, M, and others, according to the qualitative and quantitative conclusion analysis by MRW model in this paper and interpreting the results of the analysis based on the actual situation. Finally we give the policy recommendations: controlling the scale of enrollment of university education, optimizing the investment Structures of scientific research departments and university education sector,Increasing investment in vocational education to improve the efficiency of physical capital, Strengthening management of enterprise to reinforce the company on job training, expanding investment channels to compensate for the inadequate public investment.