Study On The Matching Degree Of Financial Input In Compulsory Education And Economic Growth

Education is the propulsion to promote social progress and economic development. Compulsory education is cornerstone of the three level educations. Promoting the compulsory education has an important strategic significance to enhance our national quality and the constructional improvement of the socialist material and spiritual civilization. It is also important for accelerating the process of modernization and the fundamental measures to narrow the gap with the developed countries. At present, the funds for compulsory education in China are offered by the State Council and the local people’s governments. There is a regional difference in financial input in education due to the level of economic development.This article will probe deeply into the matching problem of financial investment in compulsory education and economic growth from the perspective of educational finance. This paper first reviewed studies on the matching relationship between the investment of compulsory education and economic growth, and then summarized the connotations, influencing factors and meanings of the matching relationship. Afterwards, this paper also adopted panel data analysis method to analyze the investment of compulsory education and economic growth from a macro level to achieve a nationwide vertical comparison. Through the study, I found that financial investment in compulsory education and economic growth generally presents a similar trend of development. However, its total investment is still insufficient; the main reason is that the local government has taken a greater responsibility than the central government on expenditure. After a horizontal comparison among the provinces of the investment and economical growth, the data shows that the financial investment of compulsory education between economic growths are not completely matching among the provinces, especially in the middle part of China. Namely in that part of China the level of compulsory education investment is lagging behind the level of local economic growth, its financial expenditure of compulsory education is insufficient, which investment level is also the lowest compared with the other two regions.In order to solve the mismatch of current financial investment in compulsory education and the problems of economic growth among the regions in China, this paper discussed the realization approaches of matching the compulsory education investment and economical growth from two aspects, which is clearing the responsibility division of compulsory education expenditure and enhance economic security. More suggestions of clearing the responsibility division of compulsory education expenditure, promoting the reform of education finance system, enhancing the investment of compulsory education and improving the system of compulsory education investment are mentioned in this paper, in the hope that certain theoretical guidance can be provided for the development of compulsory education in our country.