Research On The Impact Of Educational Investment On Tertiary Industry Development

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 tertiary industry development, the paper takes tertiary industry as example in the following study. Discuss the impact of educational investment on tertiary industry development.The paper consists of four parts. Firstly, the paper qualitatively analyzes the mutual effect of the education investment and the tertiary industry development on the basis of the review of the contemporary economic theory in chapter one and chapter two. Secondly, the paper analyzes the present situation of the education investment and the tertiary industry development. Thirdly, Application of co integration theory, the paper quantitatively analyzes the effect of educational investment on tertiary industry development. We can make the following conclusion: In the long term, the impact of educational investment on tertiary industry development is obviously notable, each1%increase on educational investment, GDP increase1.185%, the tertiary industry increase1.216%, and they all have10years lag period. But in the short term, the impact of educational investment on tertiary industry development is not notable. Lastly, on the basis of the aforementioned analysis, the paper puts forward some suggestions on how to improve the education investment to promote the tertiary industry development at further step.In the paper, the author not only qualitatively studies the impact of educational investment on tertiary industry development, but also use the co integration theory quantitatively studies the impact of educational investment on tertiary industry development. Those make this paper more targeted.