Government Education Investment And Regional Economic Growth

Education is a major cause of the nation and an indispensable condition for raising the level of regional economic development.This paper mainly studies what role the government education investment plays in the process of regional economic growth and the impact on regional differences,and analyzes the reasons behind the differences.Firstly,this paper analyzes the specific mechanism between education and economic growth from the supply side and the demand side.Secondly,based on the extended model of Cobb Douglas production function,this paper proposes the model basis and uses panel data of 31 provinces,municipalities and autonomous regions in our country for 1995-2016.Select per capita GDP,per capita government education investment and other variable indicators for empirical research.This paper uses the static panel model and the dynamic panel model respectively to identify the relationship between government education investment and economic growth,and tries to use the first,third,and fifth-phase lags of educational investment and system GMM to solve the endogenous problem between government education investment and economic growth,which has obtained a more robust empirical conclusion: there is a significant positive correlation between government education investment and regional economic growth,and the sub-regional results also show that government education investment has a significant heterogeneity impact on economic growth.The government education investment has the most obvious effect on the economic growth in the eastern region where the economic foundation is relatively good and the cultural quality of the population is relatively high.The central region has also achieved a significant positive result when the investment per capita government is lagged by five periods.However,due to its poor economic foundation and level of educational development in western region,the effect of government education investment on economic growth is difficult to exert.In view of the above conclusions,this paper puts forward policy recommendations that should increase government education investment at all levels and education investment should be oriented to local conditions.