The Research Of Fiscal Expenditure On Education Of Minority Areas Influence To Economic Growth

This paper is study about fiscal expenditure on education of minority areas. Accordingto human capital theory and the theory of economic growth, to analyze the problems of thetotal fiscal expenditure on education、the situation of regional allocation about fiscalexpenditure on education and the impact on economic growth in minority areas.Since reform and open to the outside world, the speed of economic development hasbeen rapid increased in the areas of minority. That is beneficial to accumulation of humancapital in the areas of minority. But, China’s fiscal expenditure on education proportion ofGDP is significantly lower than developed countries, even lower than some developingcountries. At the same time, between the different regions of our country the configurationof fiscal expenditure on education also have some big differences. The total fiscalexpenditure on education in minority areas significantly is lower than the areas of centraland eastern. The problem of minority areas is that the scale of fiscal expenditure oneducation is lack; the allocation of fiscal expenditure on education between differentminority areas is unreasonable. In order to comprehensively expound the situations offiscal expenditure on education and economic growth in minority areas, this paper triesfrom the status analysis, empirical analysis and policy analysis to explain this problem.In the part of status analysis, firstly, to describe the situations of foreign expenditureon education, find that China’s fiscal expenditure on education proportion of GDP issignificantly lower than developed countries, even lower than some developing countries.Secondly, this paper use indicators of absolute quantity and relative amount to describe theproblem of fiscal expenditure on education, the speed of economic growth, and theregional configuration in minority areas. Find that in minority areas both fiscal expenditureon education and GDP in minority areas are keeping steady growth, and the growth speedof fiscal expenditure on education is faster than GDP. In addition, between the areas ofminority fiscal expenditure on education and GDP have a inner link. It is that the area hasthe higher the fiscal expenditure on education, the higher the GDP it has; on the contrary,the area has the lower the fiscal expenditure on education, the lower the GDP it has. By thecompare with the areas of minority, central region and eastern region, find that the areaswhich have higher fiscal expenditure on education are concentrated in the east; the areaswhich have lower fiscal expenditure on education are concentrated in the areas of minority.Accordingly, the areas which have higher GDP are concentrated in the east; the areaswhich have lower GDP are concentrated in the areas of minority. Minority area both on the fiscal expenditure on education and GDP are the lowest.In the part of empirical analysis, this paper use cobb-douglas productive function tobuild theoretical models about fiscal expenditure on education and economic growth. Inthe paper, I collected the panel data of eight minority areas, and lag two period to deal withthe fiscal expenditure on education, then take the same weights to do regression weightsestimation, and then use the weights which was the conclusion of regression weightsestimation to do the weighted least square method. Find that in the areas of minority fiscalexpenditure on education pay an important role in promoting economic growth. And itsrole in promoting has been more than two elements of the investment in fixed assets andlabor. This shows that fiscal expenditure on education has gradually become the maindriving force to promote national economic growth. So increase the investment ineducation, improve the policies of fiscal expenditure on education can effectively promotethe rapid of economic growth in minority areas.In the part of policy analysis, combined with the status analysis and empirical analysis;find the path to optimize the fiscal expenditure on education in reasonable to expand thescale of fiscal expenditure on education, improve the locatives efficiency, strengthen thelegal responsibility and pay a great importance to the financial transfer payment system inminority areas.