Research Of Shanxi Fiscal Education Expenditure’s Influence To Economy Growth

With the advent of the era of knowledge economy, the impact of human capital on economicdevelopment is growing.The level of human capital is closely related to the level of developmentand investment in education with a country or a region. Since the reform and opening up, China andthe provinces are increased for education spending power and it is effectively promote thedevelopment of the cause of education and it is greatly promote rapid economic growth. However,because there are different provinces and cities around the endowment of such differences, lead tothe education spending around the level of the irregularities. As a backward economy in ShanxiProvince, there is a great gap compared with other regions in the education investment. Therefore, itis necessary for us to in-depth study on the economic impact of fiscal expenditure on education inShanxi.According to the human capital theory and the theory of public goods, in-depth analysis ofShanxi fiscal expenditure on education level and economic development.On the basis of the data ofthe calendar year of the economy and education spending in Shanxi Province, established the basicmodel of the regional GDP and education spending with EVIEWS, it is concluded that Shanxifinancial expenditure on education promote economic growth. Comparison of financial educationspending around Shanxi and the size of fiscal expenditure on education with the East,the Centraland the West, finding that Shanxi finance education spending accounts for the proportion of GDP isstill low, obvious gap with the eastern part of fiscal expenditure on education, the fiscal expenditureis overly dependent on financial education spending act. To propose a solution to increase of Shanxifiscal expenditure on education efforts, broaden the financing channels of education funds, increasethe tax revenue, strengthen the funds supervision, improved the system of education budgetmanagement.Shanxi financial education spending level is still very low, only increase fiscal expenditure oneducation, in order to improve the proportion of GDP, thus contributing to the realization of thetarget of4%,thus to promote the economic development.