Empirical Study on Education Investment and Economic Growth

摘要

China is in the process of changing from a populous country to a resources country. Education will not be ignored in a strategic position. And education investment also has an immeasurable impact on economic growth. By the empirical research, on the basis of the statistics published by the State Statistics Bureau in 2001-2009, the article analyzed the relationship between the education investment and economic growth and proved their causality by Granger causality test, ADF test and co-integration test. The results showed that education investment and economic growth had a significant correlation (0.995) and the education investment also had a significant effect in promoting economic growth. On this basis, proposed that our government should increase the investment in education and control the education investment by State finances and the diversification of Education investors.