An Empirical Analysis Of The Relationship Between Public Education Spending And Economic Growth

With the development of social reforms, input into the relationship betweeneducation and economic growth has become the focus of many scholars.The role offinancial education spending on economic growth between eastern Midwest, what isdifferent in different provinces.In this paper,I will use eastern Zhejiang province, centralHubei Province, western Guizhou Province for the study.Making use of econometricmethods empirical study comparing,than analyze the reasons for the differencesbetween the financial relationship between education spending and economic growthand the different provinces.To promote economic development in different regions toprovide suggestions and strategies.In this paper, theoretical analysis and empirical analysis, comparative study ofZhejiang Province, Hubei, Guizhou province finance education spending three differenteffects on economic growth.At first,based on the classical production function, theintroduction of this new variable fiscal expenditure on education, and investment infixed assets, number of employees together as factors that affect economic growth,building a The new model;Next, Zhejiang, Hubei, Guizhou Provinces2000-2012calendar year of GDP, investment in fixed assets, number of employees and budgeteducation spending and other financial data,Then, in accordance with the relevant datafor the three provinces were selected model unit root test, ADF test, cointegration test,Granger causality test, impulse response test and a series of regression analyzes.The results prove that: investment in fixed assets, number of employees and fiscalexpenditure on education in all regions were to have a leading role in economicgrowth.Fiscal expenditure on education in Zhejiang Province and Hubei Province’scontribution to economic growth were greater than the fixed assets and number ofemployees,The number of employees in Guizhou Province greatest contribution ofeconomic growth, the contribution of fiscal expenditure on education is small.Financialeducation spending the eastern region’s contribution to economic growth in turn is largerthan the central and western regions,description fiscal expenditure on education tobecome an important factor in economic development.All regions should takeappropriate measures to resolve.