Hunan Education Service Development And Economic Growth In Question

Economy increases by rapidly after China joins WTO, educational service industry also obtained the considerable development. Education service industry plays a more and more important role in the society economic growth. "To build the strong province of economy and education , to realize the strategic target of enriching people and make the province more strong"is society economic growth approach brought forward by Hunan province. Research of the relation to education service industry and economic growth can provide the very good reference to economic development of Hunan.The enhancement of educational service consumption level, the progress of technology and the improvement of the overall quality of workers has had a positive influence to the economic growth. At the same time, the economic growth has provided the fund and the material logistics for the educational service industry's development. The development of educational service industry promotes the growth of economy. Based on the human capital theory and the use of one variant of Lucas's model, this paper makes an econometric analysis on the relationship between education and economic growth with all the relevant data from 1990 to 2008 in Hunan province .The result shows that the output elasticity of human capital is 1.27 to the GDP of Hunan province. And the return that educational marginal input brings is more than that fixed capital does. Therefore, it is necessary to adopt appropriate measures to boost educational service industry developing all round promptly, build a strong province of human resources and increase the investment with the right policies from the government at the background of pushing forward "One Industrialization and Three Basics" as to push forward the economic and social development of Hunan province and makes it more in line with the needs of the"Two-oriented Society"construction.