Analysis On The Relationship Between Education Investment Level And GDP In China

With the development of knowledge economy era,the development and application of human resources and intellectual resources have become a new standard to measure the comprehensive national strength of the world.Education is the basic way of human resources in various countries,and education input is the material basis of education development.It is of great practical significance to study the relationship between education input and economic growth and measure the contribution of education input to economic growth in China.This paper is based on the knowledge of economic growth theory,econometrics and statistics.Combining qualitative and quantitative methods,the relationship between educational investment and economic growth is analyzed from the aspects of total amount and structure.The vector auto-regressive model and the modified cobb-douglas production function model were adopted to study the long-term relationship between educational input and China's economic growth.On the basis of VAR(2)model,a short-term vector error correction model was established to correct the short-term imbalance.Impulse response analysis and variance decomposition analysis were used to estimate the contribution of education investment to economic growth.Results show that the structure of tertiary education investment in China is unreasonable and too much emphasis is placed on higher education.There are big regional differences in education investment in China.China's spending on education as a share of GDP is lower than the world's.There is a long-term stable relationship between education investment and GDP growth.Because of the long-term and time-delay of education input,the impact of education input on economic growth is small: for every 1% increase in education input,the GDP increases by about 0.0646%.