Economic Analysis Of China's Investment In Education

The quality and the quantity of the education investment have a profound influence on some important perspectives, such as economy, politics, culture and so on. In the era of knowledge economy, knowledge is the most important product. As the most effective method to receive knowledge, education accumulates the focus from all over the world. In this paper, I do some analysis and researches on the inadequate in quantity and the low efficiency of the education investment.First of all, I sum up the theories related to the education investment. From the very beginning, I define the nature of the education investment based on the externalities, and show the ways of education investment to prove the feasibility and necessity of the government and non-government education investment. Then I prove the importance of education investment to the growth of economy and social justice through classical economics theory, human resource theory and endogenous growth theory, and reference some results of empirical Analysis.Second, I show some statistics to depict the education investment in the past 10 years, to do some research on the effects between education investment and the economic growth and the social justice through empirical method. What is more, I get the optimal ratio of government and non-government education investment. I set up some mathematical models and use the methods of curve regression and multivariate linear regression to do the research. GDP can stand for the growth of economy and the Gini coefficient can depicts the social justice to some extend. As a result, I can use these statistics to do my research, and get some conclusions on the ratio, effect, investment scale, and trend. Moreover, I find some problems on education investment in our country.Third, I do some comparisons between the system of education investment in different countries, such as America, Britain, Japan, Australia and Canada, and find some practices and experiences to the education investment system in our country, although there are a lot of differences between these countries and our country. The developed countries have done the reform of education system since World WarⅡ, and they get some good result after more than 60 years, but they still have to face some problems. Our country do the reform just from recently and there must be a lot of problems to solve.Finally, I give some suggestions to the problems in this thesis mentioned above, from the perspectives of legislation, financial system reform and so on. And I hope these suggestions are useful and feasible to the reform of education investment.