An Empirical Study On The Relationship Between Education Investment And Economic Growth In Sichuan Province

With the advance of education modernization,the development of education has become the essence of human capital to boost economic growth.In different countries and regions,the contribution of education investment is totally different.As the core of the western provinces,Sichuan is at the stage of rapid economic development.Under the new circumstances,it is crucial to fully grasp the relationship between education and economic development in order to promote the local economy sustainable development.Firstly,this paper summarizes the relevant literature and theories about educational investment and economic growth,and systematically analyzes the relationship between educational investment and economic growth,which lays a theoretical foundation for the quantitative research later on.Secondly,this paper describes the current situation of education and economy in Sichuan Province,and concludes that the distribution of educational resources in Sichuan Province is not balanced.Thirdly,through the analysis of the overall economy of Sichuan Province,it is concluded that the overall economy of Sichuan Province is in a state of steady growth.The contribution rate of the service industry has reached the highest,followed by the secondary industry,which is dominated by industry,and the primary industry,which is dominated by agriculture.The basic driving force of Sichuan's economic growth has been changing from traditional industry in the past into the new growth stage of ?double leading? between second industry and third industry.The rapid development of service industry and the agglomeration of elements to service industry indicate that the adjustment of industrial structure has undergone great changes.At the same time,the economy of sichuan province is analyzed and compared in detail,and the difference of economic growth in each region is obtained.Finally,through the econometric analysis of error correction model,it is concluded that,in the short-term,when education deviates from the equilibrium of economic growth,it will adjust to the long-term equilibrium with the fastest speed.In the short-term error correction model,the non-equilibrium error item indicates that,in the short-term,the coefficient of the ECM of fiscal education lagged is-0.698994,which means that when short-term fluctuation deviates from long-term equilibrium,economic growth will pull fiscal education back to long-term equilibrium level with 0.698994% effort.Through the description and quantitative analysis of the present situation,it is clear that there are problems in education investment in Sichuan Province.Based on this,the paper analyzes the main reasons,and proposes to increase the proportion of financial education funds in GDP to make financial education funds coordinate with the economic growth.Some suggestions are put forward such as establishing a reasonable regulation mechanism of financial education investment,widening the channels of education investment,solving the shortage of funds rationally,adjusting the proportion of financial funds in education input at all levels,and increasing the investment in education industry.