The Empirical Research On Co-integration Relationship Between S & T Investment And Economic Growth Of China

Economio growth has always been a subject of academic research, and the factors contributing to it have been studied by scholars from various aspects. In the current period of rapid science and technology (S&T) development, S&T investment plays an important role in economic growth. S&T investment mainly consists of S&T financial inputs and S&T human capital inputs. This paper conducts research on the correlation between S&T financial inputs, S&T human capital inputs, and economic growth, so as to find the mechanism and rules of their interdependence and interaction.Firstly, this paper summarizes the concept of S&T investment and economic growth, expatiates the development of economic growth related theories and co-integration test theories,and explores the correlation between S&T inputs and economic growth.Secondly, the analysis of S&T capital, S&T HR investment and economic development is conducted. It illustrates that the lacking of S&T investment and HR capital leads to the backwardness of total economic amount.In the empirical verification part, based on the validation test of statistical data of year 1987-2004, co-integration theory is used to establish a long-term dynamic equilibrium model between S&T financial inputs, S&T human capital inputs, and China's GDP, and also a ECM error correction model. Based on the empirical results,this paper concludes that S&T inputs and the GDP are closely related. From long-term perspective, S&T inputs play an important role in improving the GDP, especially S&T human capital inputs;While from the short-term perspective,the S&T inputs have no significant effect on the GDP. Furthermore, Granger causality analysis shows that the GDP has a significant impact on 1,3-5 period lag S&T financial inputs and 1-3 period lag S&T human capital inputs;S&T financial inputs and S&T human capital inputs have no significant impact on short-term(1-4 period) GDP;S&T financial inputs begin to have significant effect on five period lag GDP.Finally, This paper summarizes the conclusions and proposed to promote economic growth and increase S&T inputs to some of its recommendations.