Research On The Effect Of Education Development On The Poverty Changes In China

Poverty has been the focus of world attention. With economic development and scientific and technological advances, poverty has been declined around the world. However, poverty remains a daunting task facing the world. "Millennium Development Goals" developed by the United Nations clearly stated: The world's extremely poor people should be reduced by half until 2015. To achieve poverty reduction has become increasingly difficult in many developing countries. From 1995 to 2007, government financial education investment has increased faster than ever before. At the same time, the labor force has a significant change in education. In addition, the Government, through the promoting economic growth and implement policies of poverty reduction, increasing investment in education, increasing the level of labor force caused by the increased level of education, can effectively reduce poverty. Therefore, education on the impact of changes in poverty, have important theoretical and practical significance.In this paper, we study the changes in our educational investment effact on poverty basicing on theory of modern economics and using various analysis methods. Firstly, the article introduces the basic theory of changes in educational investment impact on poverty and. Secondly, analyses the change status of financial education and poverty in China. Thirdly, using the data of education investment and poverty changes from 1995 to 2007, research the education investment impact on Poverty changes. Finally, draws main conclusions and gives policy recommendations.Main conclusion of the paper is that education investment has a significant positive effect on poverty reduction, though economic growth and income distribution and the elasticity of education on poverty changes is between 1.41to 5.57. Investment in education under the influence of income for poor changes in the elastic state is less than income inequality changes on poverty elasticity.The main innovation of this paper: Firstly, select the investment in education and poverty changes as the object of study, education as a new starting point, to realize the effect of changes in the expansion of poverty. Secondly, in this paper, by setting the model and deriving the relationship between education investment and poverty reduction, through education on the impact of inequality to complete the education on the effects of poverty changes from 1995 to 2007.