Metering Chinese Education Investment And Economic Growth

The past few years have witnessed the rapid economic progress of our country, and the collaborative development of education and economy is the integral part of the overall strategies. This article aims to analyze the current situations of our education and economic growth, discuss the quantitative analysis between our education and economic increase, and give advice on the benign interaction between education and economy, hoping to contribute to the public education expenditure of our country.The interaction between the education investment and the economic growth results from the relationship of input-output, production and distribution, supply and requirement. The positions of the action and counteraction between the education investment and economic increase turn to be a bidirectional interaction instead of being unchangeable. In the realistic economic life, especially the market economic system, this kind of interaction can be defined as follows. On one part, the education investment relies on the economic increase. Besides, the speed, scale, quality and means of the economic development result in the distribution of the people’s income. On another part, the amount of the education input makes an impact on the economic growth. The level and the result of education investment determine the level and quality of human resource accumulation, thus deciding on the motivation and the sustainability extent of the economic development. The education investment and economic increase not only stand as "deciding" or "being decided", but also the bilateral interactive relationship, which is continuously moving, changing and developing.Based on the statistical data from1995to2010, this article tests the stability and the short-term causal relationship of the education investment and economic development sequences. The results show that the education investment doesn’t have an obvious effect on the economic growth. Meanwhile, the causal relationship by Granger has indicated that the increase rate of the education investment doesn’t appear to the Granger reason for the increase rate of GDP. In this article, the author thinks that the following aspects give rise to the weak impact of the education investment on the economic development. These aspects are the small amount and the unreasonable structure of the education investment. Therefore, it is necessary for us to make some plans for the education.