Research On Endogenous Relationship Between Higher Eduction And Economic Growth

The study of the relationship between human capical and economic growth is always one of the central themes of pedagogical economics. As the main means of human capital’ formation, the study of the relationship between education and economic growth is concerned by many domestic and foreign scholars. Higher education conprises the top of the education system, playing an important role in the economic development process. Today, higher education of our country has entered a new period,whose cores are the improvement of the quality of education. Our country is now undergoing the transformation of the economic growth pattern and the readjustment of the economic structure. What kind of role should the higher education play in the promotion of our country’s smooth and healthy economic growth is a very big problem, focused on by all the Education and economic researchers.This paper aims to research the influence of higher education to the economic growth, arouse the rational consideration of our government, colleges and society torwards the development of education and find a better way for our education to adapt to and prompt the economic growth. To attain this purpose, time series data of higher education development and economic growth of hubei province are selected, econometric analysis method is also used in the empirical analysis.This research mainly contains two parts.Firstly, empirical analysis is used to analyse the contributon made by higher education to the economic growth of hubei province. A linear econometric model is built up on the basis of Cobb-Douglas production function. After the ADF test of the data, Johansen Cointegration is used to test the co-integration relationship and VEC model analysis is used to analyse the short-term fluctuations between higher education and economic growth of hubei province. At last, variance decomposition and impulse responses function is used to research the pratical contribution and dynamic effect created by higher education to economic growth. A conparison of the contribution and the influence of the higher education and education of other levels is draw in order to find out the trend and features of the influence made by higher education to the economic growth.Secondly, based on the panel data of the3central province during1949to2009, panel data analysis method is used in this paper to analyse the endogenous dependent relationship between higher education and economic growth, find the correlationship between this two factos and compare the differences of the marginal influence rate of higher education to the economic growth of the3provinces, and then illustrate the endogenous dependent relationship between the3provinces’higher educaion and economic growth and practical effects of higher education to the regional economic growth.