Research On The Financial Education Investment And The Economic Effect In Xinjiang

Education investment is an important source of human capital formation andaccumulation, the human capital theory have demonstrated the contribution ofeducation human capital to economic growth and income distribution. In humancapital theory, education investment has economic effect, investment in educationprovide the labor force and high technology talents for the society through theconduction mechanism of human capital, so as to promote the upgrading of theindustrial structure and economic growth. Human capital is conducive to economicgrowth and the increase in personal income, so that the inequality of socialdistribution of personal income tends to reduce. Xinjiang is located in NorthwestChina, is less-developed areas, and the minority nationalities accounts for the majorityof population. Education is particularly important in such an area, it is importantmethod of the poor and vulnerable groups to get rid of poverty, is an important sourceof human capital and important driving force for economic development in Xinjiangarea, is the deep-seated factors for the construction of the development and stability ofXinjiang. Therefore, research on financial education investment in Xinjiang and itseconomic effect, is of strategic significance to Xinjiang’s economic development andsocial harmony and stability.Based on general theory, using empirical research methods, Reviewing of theXinjiang financial education investment and development of status quo,the article usethe statistical yearbook data, do test for nonparametric correlation about factors ofXinjiang financial investment in education and its influence through the softwareEviews.These factors include the level of economic development, ownership structure,industrial structure and population scale etc. Then analyzes the economic effects ofthe amount and structure of fiscal investment in education throngh simultaneousequation, the principle of system dynamics,and the method of grey relationalanalysis.Finally, give the recommendations on how to improve the Xinjiang financialeducation investment level, promote economic growth,and prevent the expansion ofthe gap of income distribution on the basis of the above analysis.In addition to introduction,the article is divided into five parts.the fisrt part is thecontents of theory about financial education investment, mainly includes Thedefinition of the concept of Financial investment in Education, The human capitaltheory, public goods theory and the theory of income distribution. The second part isthe analysis to the scale, structure and the formation of human capital of Xinjiangfinancial education investment. The third part is to analyse the nonparametriccorrelation about the correlation factors of Xinjiang financial investment in educationand its influence. The fourth part analyses the economic effects of financial educationinvestment in Xinjiang.fisrtly,analyses the scales of economic effects by using the simultaneous equation and the principle of system dynamics from the point of view ofboth static and dynamic.Then analyses the structure of economic effects through greyrelational analysis.The fifth part is the recommendations on how to improve theXinjiang financial education investment level, promote economic growth,and preventthe expansion of the gap of income distribution.