Research On The Northwestern Education Spending In Education And Economic Growth

Competitive situation of a country or region, in the knowledge economy depends mainly on the development of education through the development of education to promote rapid economic growth has a very important practical significance. With the rapid economic rise, China has become a major economic power in the world has the potential, at the same time, economic development has made tremendous achievements, rapid economic development, people’s living standards improve, the construction projects are making progress, but the per capita GDP but with the total ranking serious derailment caused this result, among other factors, education is inevitable that one of the reasons, lack of education spending, education structure is irrational, caused by a lack of human resources and high structural unemployment, which phenomenon is more pronounced in Northwest China. From education and economic development, the Northwest region is the weakest economic and educational areas, and the gap between the western and eastern and central regions showed a trend of further expansion. In the further implementation of the western development background, the western region’s backward educational, apparently hindered the pace of economic progress, can not meet the human resources needs of the educational needs of economic development and people’s needs. Northwest herein mainly refers to the five northwestern provinces, including Shaanxi, Xinjiang, Qinghai, Ningxia and Gansu, located on the Silk Road economic belt, is the construction of the Silk Road economic belt an important basis, in this context, the five northwestern provinces District will usher in a new historic opportunity for development. The five provinces and regions in the entire western area and the country’s most extensive poverty, most poor people, poverty deepest area, higher economic growth in future demand for education. In 2013, the GDP of the five provinces in the northwest area is 3.870256 trillion yuan, accounting for the gross national product(GDP) was 6.80%, the per capita GDP of the five northwestern provinces of the country’s total share of low and declining relative level. The level of development of productive forces of the five northwestern provinces and the country, the gap between the east is also widening, Gansu GDP per capita is less than 60% of the national per capita GDP, which shows the five provinces in northwest China is lagging behind productivity, low living standards the poor are still many.From the promotion of sustainable economic development and improving Northwest China’s economic growth point of view, the current situation of the financial expenditure and economic development Education Northwest China were analyzed. Analysis shows that the total amount of financial education expenditure, although the five northwestern provinces and the current is increased, but the proportion of the total expenditure has been no increase in spending on education and economic development, lack of coordination; while there is the problem of irrational expenditure structure. Secondly, through the stationary test, Granger causality test, impulse response, empirical analysis, namely establishment of a national education spending and economic growth and Northwest China’s education spending and economic growth compared VAR model, select 1995--2013, China Northwest China’s data, the relationship between education spending and economic growth, that: Northwest China’s education spending and economic growth mutual Granger causality, and in accordance with the 1995- 2013 Dynamic Econometric Time Series Analysis can be drawn: the role of economic growth in the five northwestern provinces of significant expenditure on education, economic growth is the key factor affecting the five northwestern provinces of education spending, economic growth in the current spending on education will play a role, and lagging economic growth in the first phase of Flexible spending on education is approximately 77.7%. Northwest China’s education spending effect on economic growth are more significant, elastic lagged education spending on the impact on economic growth of about 54 percent, lagging the second phase of education spending contributed to economic growth elasticity of 57%. Finally spending on education and the structure of China’s five northwestern provinces of the problems, we put forward policy recommendations, namely to increase spending on education efforts of five northwestern provinces and autonomous regions, and optimize the structure of fiscal expenditure Education Northwest China, the development of Northwest China It plans to retain and attract talent and build policy recommendations Northwest China’s fiscal education expenditure performance evaluation system aimed at improving the scale and structure of the five northwestern provinces of fiscal expenditure on education to promote economic growth.This paper is divided into five parts. The first part includes the background and significance of the research, literature Overview and contents and methods; The second part is the theory expounded content, including education spending concept, definition of the concept of economic growth, new growth the third part is an analysis of financial education spending five northwestern provinces of size, structure and economic conditions; theory, education economics theory, public goods and property and human capital theory of education, etc. part IV in order to further study the five northwestern provinces relationship district education spending and economic growth, through a variety of tests stationary test data, and the establishment of a VAR model of the country’s five northwestern provinces and education spending and economic growth data to do empirical research. The fifth part is the policy recommendations to promote the five northwestern provinces of financial education spending.