The Evidence Studies Into The Affect Of The Chinese Educational Financial Expenditure On Economic Growth

With the coming of the intellectual economy age, the competition among the countries in the world for the economic power and for the position of big powers is in fact the competition of education, talented people, and science and technology.The reason why many developed counties remain a higher economic level, is that they have rich resources, and it is more important that they have a sound educational system and higher human capital so that they can keep their economic growth. In the past few decades, the economic function of education is confirmed by more and more countries, and the leading position of the education to the economic development becomes even more evident.<The Outline of medium and long term educational reform and developing plan (year2010-2020)> points out to develop education first, and to further carry out strategy of developing country by science and technology and strengthening the country by talented people, so as to build up a human capital strong power. Many elements have effect on the economy of a country. Selecting education as the subject for study, the dissertation aims at exploring the effect of the most fundamental element on the economic growth transformation of our country. With the rapid development of economy, governmental financial revenue has increased, and governments lays more and more importance on educational financial expenditure Educational financial expenditure is a powerful financial tool for developing education, and promoting economic growth. The systematic studies into the affect of the educational financial expenditure on the economic growth, is great importance.The main points of the dissertation:Firstly, points out mainly concerning concept, concerning economic theories and systematic study of the educational financial expenditure on the economic growth, analyzes the present situation and the developing trend of educational financial expenditure and economic growth through data listing. Secondly, has made over-all study into educational financial expenditure through a number of ways. It explores on how educational assumption can expand domestic needs, so as to push economic growth. Educational spilling of educational financial expenditure volume affect on the economic growth. It analyzes with evidence the economic growth from many angles, such as different areas, different educational levels, urban and rural areas. It also makes a study of cause of contribution level and the problems in the related areas. Lastly, the influencing effect of the financial expenditure on the economic growth, such as the degree of implementing opening-up policy, the ability of the creation of financial expenditure, the division policy of the financial expenditure, the transfer of the payment and the science and technology and so on. The summary of the dissertation comes to the conclusion and put up some suggestions.The key conclusion:firstly, the evidence studies show that educational investments, educational financial expenditure pushes the economic growth forward clearly. There is a long term co-integration relations between them. TVP model result shows that the increase of educational financial expenditure has an affect on the training up of the workers, with the some small fluctuation. Since year 1978’s 0.03, the rate increases to 2012’s 0.35. It means educational financial expenditure pushes the economic growth stronger. Secondly, the increase of the educational financial expenditure promotes human capital and technological creation, so as to push forward economic growth. It also speeds up the transfer and the creation of science and technology. The human capital, based on the effect of educational spilling has a greater affect on our economic growth than science and technology and physical investment based on the spilling effect of education do. Thirdly, the structure of the educational financial expenditure has effect on the economic growth. In dual elemental economic structure, there are noted differences in educational financial expenditure of the elementary, secondary schools between urban and rural areas. Differentiation of educational financial expenditure between the urban and rural areas leads to the difference of educational level, and also hinders rural economic development. Fourth, the degree of economy open-up,the science and technology level, the financial policy of education and the capability of transferring financial payment, all have their different respective affects on the contributing rate of the educational expenditure to the economy. Because of these promoting elements, the affect of our educational expenditure to the economy growth has been on the rise.The creative points of the dissertation include both the creation of approaches and data selection. Based on the dynamic mechanics concerning the affects of the financial expenditure in economy on economic growth, Different models are set up to analysis from different angles the functions of economic growth. TVP models are used to study the dynamic affects of the educational financial expenditure on economic growth. All these can not only show the affects of the great changes in economic structure and the financial policy on the relationship between the changing elements, they can also show the ever-changing trend of the contributing rate of the educational financial expenditure on economic growth. Secondly,considering it has lag influence on economic growth, and the influence is not the same on different levels, Distribution Lag Model is used to analyze the affect of the structure of educational economic expenditure on economic growth. The creation on data selection is as follows; the dynamic changes of the educational financial expenditure in primary and junior middle school are used to analyze the effect of the educational financial expenditure on the economic growth of the countryside and the whole country as well. The introduction of the educational financial expenditure as virtual changing elements can better analyze the influencing elements of the educational financial expenditure on economic growth. However, the dissertation still has some shortcomings and some questions to be settled. For example,when the regional structure of the educational financial expenditure is discussed, Spatial Econometric Model should be used, so as to make a better study of whether the advanced provinces have noted educational spilling effect on their surrounding provinces. What is the affect of the huge movement of the qualified manpower from the under-developed area to the developed area on the different regions and the whole country as well? It has caused the shortage of human capital in under-developed area and the surplus of human capital in the developed area. These are the aspects need to be explored further.