An Empirical Analysis Of Financial Expenditure Of Higher Education On Economic Growth

Education is a major mode of personnel training, human capital is a key factor in contemporary society essential to promote economic growth. Higher education not only is an important guarantee for improving the quality of human capital, skills, etc., but also is an important means to change the labor-intensive and extensive production. In recent years, the Chinese government attaches great importance to education and have improved the financial education expenditure share of GDP, higher education spending increases. So, how the impact on this growth to China’s economy, In this paper, theoretical analysis based on the use of empirical data, empirical analysis of the impact t of higher expenditure on economic growth.In the aspect of theory, first of all, the connotation of financial education expenditure and economic attributes of higher education have been summarized and defined; Secondly, endogenous growth theory and the human capital theory analyzes the theoretical basis for the role of higher education to economic growth; Finally, analyzed the mechanism of higher education expenditure on economic growth. In empirical terms, mainly in Barrow’s economic growth model, by means of measuring software, from the two aspects of total and regional structures to study the economic growth effect of higher education financial expenditure. In the aggregate, the use of the national higher education financial expenditure and GDP data regression analysis, empirical results show that:higher fiscal spending can to promote economic growth, and its role has a certain lag. Higher education spending increased by1%, then increase economic growth0.29%. In the aspect of regional structure, the use of panel data, empirical comparison the economic growth effects of fiscal expenditure on education in each region. Select the variable coefficient fixed effects model regression analysis, the expenditure for each provincial contribution of higher education to economic growth in the region. Midwest higher economic growth effects of higher education spending more than the eastern.According to the results of empirical analysis, combined with the current status of higher education expenditure, put forward the corresponding policy recommendations. Such as increase investment expenditure in higher education; optimize the regional structure of higher education spending; colleges and universities in order to ensure the use of fiscal funds efficiency should increase supervision the use of funds for college financial; establish good performance evaluation system of higher education and other expenses.