Research On The Impact Of Government Investment In Education On Human Capital In The Context Of Dual Economy

Since the reform and opening up,the economy of our country has maintained rapid development,ranking second in the terms of global economic aggregate.While the economy has been developing steadily,the unbalanced development of regional economy appears,which is manifested as the widening income gap.Among these problems,the problem of urban-rural dual economic structure is the most obvious.Economic aggregate,income and social resources in rural areas are quite different from those in urban areas,and human capital also shows an unbalanced development trend.As an important factor of economic growth recognized in the world today,human capital not only plays an important role in transforming the economic development mode to obtain more sustainable economic growth momentum,but also receives high attention from countries around the world for its significance in innovation and creation.According to relevant statistics,China has become a large country of human capital,but there is still much room for development from a powerful country of human capital.How to improve China’s human capital,and thus promote the sustainable development of Chinese economy will become the focus of China’s economic policy for a long time to come.In the relevant research on human capital in China,most of the research regard human capital as an element of economic development to study its relationship with economic growth and how to promote economic growth,few studies take human capital as the result of the input-output model.Through the analysis of the stock and structure of human capital,we can find that there is an obvious dual structure of human capital in China,that is,there are significant differences in the level and structure of human capital between urban and rural areas as well as between regions,which is specifically reflected in the high level of urban human capital and the low level of rural human capital.According to the relevant research on human capital,the factors that affect the output of human capital can be divided into four aspects: government,schools,individuals and families.As the main influencing factor of a country’s human capital level,government investment in education is related to the way and direction of the country’s economic development.This paper introduces government education investment and human capital into the input-output model,specifically analyzes the impact mechanism of government education investment on human capital,and then analyzes the difference between the influence of government education investment on urban human capital and its influence on rural human capital.It puts forward suggestions on how to improve the level of human capital,it plays a positive role in many aspects,such as optimizing our educational resources,improving the imbalance of our human capital and promoting our economy.On the basis of summarizing the factors that may affect human capital,this paper brings the factors of government,schools,individuals and families into the educational production function,and puts forward the hypothesis that government investment in education,as the production factor of human capital,may conform to the law of diminishing marginal returns;According to the theoretical model and assumptions,China’s education tracking survey is selected as the data source.The government’s investment in education is measured by the financial expenditure per student,and the students’ academic achievements are used to characterize the stock of human capital.Because of the complexity of the inherent nature of human capital,academic achievement is obtained by factor analysis from four indicators of students’ cognitive ability,non cognitive ability,academic performance and physical and mental health.Through variance analysis,it is found that there are significant differences in students’ academic achievements in terms of gender,whether they are only children,and other personal characteristics,as well as family economic conditions and the type of school location.According to the multiple regression analysis between academic achievement and its influencing factors,it is found that the average financial expenditure per student has a significant positive impact on students’ academic achievement,while the regression coefficient of the square term of the average financial expenditure per student is significantly negative,indicating that the average financial expenditure per student,as a production factor of students’ academic achievement,conforms to the law of diminishing marginal returns.According to the regional type of the sample schools,the urban-rural sub sample regression also found that the relationship between the average student financial expenditure and students’ academic achievements was not purely linear,but showed an inverted "U" shape,that is,with other inputs unchanged,the marginal output of students’ academic achievements would increase first and then decrease.The results of sub sample regression also show that the impact of per student financial expenditure on students’ academic achievements in rural areas is greater than that in urban areas.In fact,there is imbalance in human capital between urban and rural areas,that means,if they want to obtain the same increment of human capital,rural areas need more investment.Due to the existence of the law of diminishing marginal returns,it can not only optimize government education resources,but also improve China’s urban-rural dual economic structure,and generally promote the level of human capital in China to tilt government investment in education to rural areas and other economically backward areas.