Investment In Education In Economic Growth In Shandong

As been proved by many scholars, education investment of a nation undoubtedly contributes to the economic growth. Meanwhile, education investment plays different role in different country or region. To make clear the relationship between the education investment and the regional economic development, the paper takes Shandong province as example in the following study.The paper firstly reviews the relative theory about education economy and education investment, qualitatively analyzes the mutual effect of the education investment and regional economic development, which establish theoretical foundation for the coming quantitative analysis. Then state the current education investment of Shandong province by citing a lot of statistic data. After that, the paper quantitatively analyzes the direct and indirect effect of the education investment of Shandong province to the gross regional growth on the basis of Feder-Model, and quantitatively analyzes the effect of different education to the growth of Shandong province on the basis of Gross Production Function. Pointing out that the education investment of Shandong Province could advances the economic growth.Research finds that the education investments of Shandong province significantly promote the economic growth; its yield elasticity is much higher that of labor and capital. In the past twenty years, vocational secondary schools' education contributes the most to the development of Shandong' economy.So we should realize the importance of education investment to economic growth, and try to change the shortage problem of education investment, and form the benign recycle between the education investment and the economy. It has the extremely important strategic sense in Shandong province.