Quantitative Analysis on the Relationship between Hubei's Financial Input in Education and the Economic Growth

摘要

This essay conducts an empirical research and quantitative analysis with the application of econometric methods and models, such as VAR theory and impulse response function, on the relations between the financial input of Hubei in education and the economic development during the past decade. Studies show that there exists an equilibrium relationship and coordinated interaction between Hubei's financial input on education and its actual economic growth. The fluctuation of educational investment is bound up with that of economic increase with causality. It is feasible and effective to realize rapid growth of economic aggregate through enhancing educational input, and a long-term policy, but not a short-term one, which should be adopted when utilizing educational investment to boost the economy.