Measure Analysis Of Contribution Rate Of Educational Investment To Economic Growth In Shandong Province

Education is the foundation of a century-long project.The rapid development of a country’s economy cannot be separated from the support of various talents,and education is the most effective and direct way to cultivate a large number of talents,which is the key to the formation of human capital.The economic value of education has become more and more important.Shandong used to be a province with strong education.It performed well in the college entrance examination and all kinds of examinations,and it can be described as the first tier.However,in recent years,shandong’s education development as a whole has been slightly weak,and it has been overtaken by Jiangsu and Henan,and is gradually falling behind other provinces.At present,Shandong province is trying to change the status quo of slow development of education,and is committed to realizing high speed,high level and high quality development of education,which requires shandong province to pursue the speed of education development and expand the scale of education at the same time,but also take into account the stability of education quality.Based on this purpose,this paper makes an in-depth and detailed study of the relationship between education investment and economic growth in Shandong Province from three aspects,and puts forward reasonable policy suggestions based on the research results,so as to make contributions to changing the education situation in Shandong Province.First of all,from the education level of structure,the scale of higher education in shandong province and operating conditions,the total education investment,education investment source structure four aspects of descriptive analysis about the present situation of education in shandong province development and investment,with the big education province compares the education investment situation of jiangsu province,found that because of a shortage of education investment scale,low per capita education funding problems,In recent years,education in Shandong province lags behind other education provinces.Therefore,it is necessary to deeply analyze the economic benefits of education in Shandong province and explore how to realize the virtuous cycle of economic growth and education investment.Secondly,using the time series data of Shandong province from 2000 to 2019,empirical analysis is made on three variables including GDP,total investment in education funds and total number of on-the-job teaching and administrative staff in Shandong Province,and the VAR model of the impact of education investment on economic growth is constructed.The co-integration equation established by VAR model can find that financial investment in education has a greater impact on the economic level than human investment in education,indicating that financial investment in education is more intuitive and significant and can receive feedback on economic benefits in a short time.Granger causality test,impulse response analysis and variance decomposition are conducted on VAR model,and it is found that both educational financial investment and material investment have positive promoting effect on economic growth,and the improvement of economic level can stimulate the development of educational investment level in turn.However,GDP in Shandong province and education there is no obvious causality with human capital investment and the theory.It shows that Shandong province education problems such as hysteresis and investment efficiency is low.So we need to further measure the contribution of education financial investment in Shandong province,and will lag behind economic efficiency into consideration,and find out the development of education in Shandong province and regional differences.It also foreshadows how to measure the contribution rate of educational investment to economy and the choice of variables.Finally,using dynamic panel data of 16 cities in Shandong province from 1996 to2019,the improved CAI Zengzheng two-sector analysis model based on Field model is established by one-step differential GMM estimation method.The contribution rate of education investment to economic growth in Shandong province in two different periods from 1996 to 2006 and from 2007 to 2019 is calculated.It is found that due to the implementation of the education policy of free tuition and miscellaneous fees for compulsory education in 2007,the contribution rate of education investment in Shandong province has increased greatly in recent years,from 0.15 in 1996 to 2006 to 0.27 in 2007 to2019,indicating that with the continuous improvement and improvement of education policy,The economic driving role of education investment has also been further developed.The contribution rate of education investment in the eastern,central and western regions of Shandong province is 0.2,0.18 and 0.12,respectively.The contribution rate decreases from east to west,which is mainly related to the difference of the scale,structure and marketization of education investment in different regions.