The Influence Of Financial Education Investment On Economic Growth

Since the reform and open policy,China's economy has maintained rapid growth rate for a long time.However,the persistent drag on the economy in recent years causes the China faces new challenges in economic development.For the sake of addressing the problem,the Chinese government proposes that Chinese economic growth should be oriented by high quality instead of high speed.It means that China changes the developing mode to achieve a high-quality development of national economy through promoting technological progress and total factor productivity(TFP).According to Educational Economy Theory and Endogenous Economic Growth Theory,technological progress is derived from the increase of human capital stock brought by educational investment.The main source of education investment in China is financial education investment.Based on above,this paper hopes to introduce the intermediate channel of technological progress on the basis of the theoretical and empirical analysis to study the influence of financial education investment on economic growth.First of all,the influence of financial education investment on economic growth is discussed in accordance with the relevant theories collected from the existing literature that sorted by this paper.On this basis,this paper proposes three hypotheses as follows: Hypothesis 1: financial education investment will promote economic growth;Hypothesis2: Technological progress is an important channel for fiscal education investment to boost the economic growth.Hypothesis 3: There is heterogeneity among different regions,and the impact of fiscal education investment in the eastern region on economic growth is more significant than in both the central and western regions.Secondly,based on the provincial panel data of 31 provinces(including autonomous regions and municipalities)from 2004 to 2014,this paper conducts empirical test by using the two-way fixed effect model to examine the above hypotheses.Finally,the following conclusions are drawn: first,financial education investment has a significant role in promoting economic growth,and technological progress is an important channel for the role of fiscal education investment in economic growth;second,there is a heterogeneous result of the influence of fiscal education investment on economic growth.The implications of the above conclusions are lists: firstly,China's economy has shifted from high speed to high quality growth mode.Governments at all levels should increase financial investment in education to promote the accumulation of human capital so as to maintain sustainable and high-quality development of national economy;secondly,the eastern region should increase financial investment in education to improve the quality of human capital while improving the stock of human capital;thirdly,the central and western regions not only need to increase financial investment in education but also should implement the talent introduction system as well as build a talent development platform;fourthly,the state should improve the weight of education in the assessment index system of local officials.