Research On The Relationship Between The Transformation Of China’s Economic Structure And Financial Investment In Education

Development of domestic and international practice shows that education is an important driving force for economic development. In the economic restructuring growth process, the role of human capital gradually increases; socio-economic status of education is also expanding. The same time as the development and maturation of economic theory, the quasi-public product nature of the education gradually is concerned. And therefore, reasonable financial education system is an important part of economy development and social equity. The significance of financial investment in education in today’s society is to improve labor productivity, accelerate the transformation of the industrial structure, and promote the formation of comparative advantage and the fairness for the starting point and efficiency of resource allocation of labor unity, fully active socialist market economy.The article gives an analysis of the economic effects of the financial investment in education. Human capital formation as a starting point, human capital formation mechanism in labor market included, and the article introduces stochastic endogenous growth model to analyze the mechanism of financial investment in education in the growth of economies in transition. On this basis, the use of time-series data of domestic and inter-provincial panel data find the relationship between the amount of financial investment in education and the labor force and structure, capital accumulation and economic growth, and that our financial investment in education is one way affected by economic restructuring and development. So our fiscal policy should be optimized based on the economic structure of the labor factor allocation, promote mutual coordination between educational investment and economic transformation of financial development and deepening of the reform of the labor market, and actively promote economic education new initiative mechanism of transformation. Our country should further expand investment in education, focus on the differences between regions and the integration of regional development coordination, increase financial education investment, especially basic education transfer payments to the backward areas, maximize the role of fiscal policy in education investment in economic transition.