An Empirical Analysis Of Regional Differences In Social Returns Of China's Investment In Education

With the development of the economy, the economical characteristic about knowledge, technology, information has become increasingly obvious. The role of human capital on economic growth is more and more important. Investment in education plays an extremely important role in raising the stock of human capital, improving the quality of popular culture, increasing the gross domestic product and promoting economic develop steadily. First of all, investment in education is a productive investment, By increasing the stock of human capital of workers can improve the technological content of products, thereby increasing the marginal productivity of physical capital and ultimately promote the improvement of the gross domestic product. Second, investment in education is a kind of consumer input, and now, education has created a new economic growth point, not only promoted the consumption of relevant education industry, but also create employment, enhance the awareness of educational input, which can motivate individual educational investment amount and the increase in consumption of educational products, In short it can promote economic growth. Finally, investment in education can greatly enhance the competitiveness of enterprises, The higher the human capital stock of employees is, the more innovative products are be produced. and now Enterprises are constantly shortening product life-cycle, enterprises are now hard to live on a kind of product, enterprises have to constantly develop new products, an enterprise's innovative products determine the size of market share and the amount of excess profits.Economic growth theory has proven human capital which associated with innovation and diffusion is the internal driving force of economic growth. China, the world's largest developing country, is at the very uneven economic development and regional investment in education in widely different circumstances, rather the global economy are faced with the opportunities and challenges of information technology. Under pressures of the upgrading system and the technological, the individual province of china, if not timely adjusts to education strategy to improve their competitive ability and adaptation of the economic environment, the State is bound to drag down, technological and cultural gap between regions is bound to expand, personal economic conditions can not be improved.Benefit analysis of investment in education is also called as rate of return of education, rate of education return is a single individual or the community measure to measure its investment in education, this method is the basic methods to measure the investment in education. It is generally believed that the rate of return to education which is to evaluate the costs and benefits of education is a useful index, which attempts to answer is whether the effective use of educational investment, and whether resources should be invested in education. Through different regions, different industries, different levels of education yield research can determine the allocation of resources within education is reasonable, including the east and west, rural and urban, men and women, and all other reasonable allocation of educational resources problem.This article is based on Feder model and panel data, which attempts to analyze education in the community. Through calculating(), the Education Sector Education Sector on the non-elastic and non-education sectors of the society's indirect contribution to the total output of the product( ), investment in education can be drawn on non-education sector, the size of social benefits. Overall, investment in other sectors of education has significant social benefits, even the smallest role in the eastern part of spillover elasticity is relatively high, but also has social benefits in all areas very different, more by the size of this figure is apparent Education social benefits into the regional differences, the most economically developed east because of diminishing marginal returns and spillover effects of flexibility in the least because the economy is relatively backward western region, education spillovers not be fully realized and middle ranks. Because the area of a newcomer to the situation in Central and itself has a certain economic level and become the highest in the region.This paper is divided into five sections. Chapter I is Introduction, section I summarizes the significance of the reseach on Social returns of China's investment in education, Section II provides a brief overview of the domestic and foreign research ahout returns on educational investment, and Section III describes the structural arrangement of articles as well as research methods of social returns of investment in education.The second part of the paper explains investment in education, Section I explains in detail the meaning and characteristics of educational investment, production and consumer is the most important character of education. Section II describes the establishment of the main principles of investment in education: The Bnnefit-received Principle,The Ability to Pay Principle, The Equal Educational Opportunity Principle, The Spillover Principle of Educational Returns. through these four main principles, investment in education can be divided into individuals, businesses and governments. In view of the importance and the dominant of public investment in education, Section III discusses the factors affecting public investment in education.Chapter III is about returns of the educational investment, First, educational investment benefits will be divided into private benefits and social returns, Section I, Section II has separately presented a detailed explanation of their meaning, and then further elaborated on the difference between the two. Section III focuses on estimation methods of returns of investment in education, we will use the Feder model to measure social returns of investment in education.Chapter IV is not only about the measurement of evidence, but also becomes the core of the paper. In the first section, we have a linear transformation of the Feder-model, getting the spillover elasticity of investment in education. Section II collectes the corresponding data, After deletion we summarize corresponding data to each variable of Feder-model. Section III firstly discusses the three forms of panel data, and Then we calculate three regional Social returns of China's investment in education by Eviews software, we will find every region data is suitable for mixed-model, so we can get their own expression. The Last part analyzes measured outcomes of the regional social returns of investment in education.Chapter V summarizes the empirical part of the measure, and add a number of policy recommendations. In this chapter, section I reviewed the relevant knowledge of the first four chapters, focusing on the theory summary of Chapter IV,it can be found investment in education has a very significant spillover effect, but again showed a clear regional differences. For the respective analysis of the preceding three chapters, Section II have raised a certain amount of policy recommendations.