Research Of Education And Economic Growth Among Various Regions In China

Education is an important engine of the development of economic and society atany time. Especially in the21st century, an era of knowledge-based economy,education and allocation of the talents are a good way to measure a country’s corecompetitiveness. Under the background of the globalization and knowledge economy,more and more people become concerned about the relations between education andeconomy.This paper analyzes the long-term and short-term effects of education investmenton economic growth and regional differences. Some tools of time series are used suchas panel unit root test and panel cointegration test, and establishing the panelcointegration model and panel error correction model. The data includes educationinvestment, assets per capita and GDP per capita of31provinces in China from1997to2011. It shows that there is a long-term stable equilibrium relationship betweeneducation funding, fixed assets investment per capita and economic growth in GDPper capita. And there is a positive effect of mutual restriction and promotion betweeneducation investment and economic growth, but it is generally low and differs greatlyfrom different regions.