A Study On Relationship Of Economic Growth Between Education Popularization And Health Expenditure

Economic growth means an enhancement of output. On the other hand, economic development not only includes the promotion of output, but also refers to the improvement of living conditions, the advancement of social structure, etc. Though the economic growth just reflects one aspect of economic development, it still becomes the hot spot to economic research for its visualization and metrizability.As the education popularization and the rising of government medical care expenditure may give helps to the accumulation of human capital, we will discuss the relationship of economic growth between education popularization and health expenditure. In order to know whether education popularization and health expenditure have significant influence on economic growth, the paper uses primary,secondary and tertiary education enrollment rate and health expenditure taken part in GDP percentage to represent education popularization and health expenditure, then to get the numerical relationship between proxy variables and economic growth. For empirics, the paper selects well-founded panel data from 17 low income countries,41 middling income countries and 24 high income countries dated from 2001 to 2004 to analyze dependent variables-average income per capita. Through the empirical test of fixed effect model and the consideration of income promoting effect from average amount of change of each independent variable, the paper suggests that: To promote economic growth of low income countries, government may take both physical capital and human capital into consideration, especially the popularization of primary education and secondary education in human capital. To middling income countries, government may pay more attention to education popularization and health expenditure compared with physical capital, meanwhile it must pay equal attention to education and healthy. The points of economic growth to higher income countries are to take both physical capital and human capital investment into consideration, especially the promotion of health expenditure and the popularization of tertiary education. Base on the analysis of empirics, considering the influences of social capital's transition on human capital investment during China's transformation, the paper finally advice that government needs to exert the leading role of finance in human capital investment and realize the regurgitation-feeding from industry to agriculture in order to promote the human capital accumulation.