The Empirical Analysis Of Education's Pulling Function On Economics Of China

The increase of economy is one of the key problems in every country in the world, especially in the developing countries. If a country can succeed in the keen competition relies on if it has advantage of human resources. A developing country is backward not because of the lack of its material possessions but the lack of human resouces.The lack of specialize labors makes China has little ability to create or learn the advanced technology from the developed countries. As a result, we loose the opportunity to make good use of subsequent advantage. The education of a country must follow up the increase of its economy. Education is an important part of national economy accounting, so the development of education is apart of growth of economy essentially. At the same time, education is base of growth of economy and promotes it. On the other hand, growth of economy provides education with a must and helpful security. The development has a deep meaning, and plays an important role in the increase of economy.So this paper will analyze the promoting effect that education plays on the economy from the input and output of education, widely basing on the researches both from home and abroad. And I will complete it from the following parts:In chapter 1, we analyze the development of education in our country. From the result of our analysis, the number of people with junior middle school diploma increased from 20.04% in 1982 to 38.34% in 2005. The number of college diploma increased by 733.82%. The amazing number illustrates the great increase of higher education recent years in China. From this situation, the fastest increase is working power of masters, followed by those with at least college diploma. The number of technical school students grows fastest, followed by universities. From the point of input of education, output of GDP is increasing, but input of education is apparently restricted. In sum, the main characteristics of development of education are that: input of education keeps increasing; development of education is restricted; higher educational input increases fastest; and the allocation of regional finance and society increased.In chapter 2, we introduce education theory, human resource theory, and economic growth theory. We point out the relationship between human resources and economic growth. Then, we introduce a econometric model of educational economic growth, using many preused function and leading out classical C-D production function.In chapter 3, we introduce main model-VAR model in detail. We choose the Johansen analysis framework. Besides, we introduce Granger Causality test. Followed by a development of the model of C-D production function, we get a equation y=αk t +ευt+δe t+? . This serves as a base for the following empirical investigation.In chapter 4, we analyze the relationship between education and economic growth in two aspects. First, from the view of analysis of educational output and economics output, We use average educational years to proxy educational output, and GDP proxy overall output, and fixed asset input proxy asset input, using data from 1978 to 2004. Before integration analysis, we carry out an ADF test. With a result of integration, we carry out VAR model. Second, from the view of educational input, with increase rate of overall output, educational input, labor and fixed asset input, we analyze with the data from 1978 to 2004. As above, integration is tested. From the result, we can see that the growth elasticity of all output is positive. This means that the education in our country is still labor-intensive.In the end, we analyze the current problem and cause of low contribution rate, and give some suggestions. The overall sum and relative sum are still low, structure of input is irrational, the ability to transfer technology to labor is not effective; overall educational level is still low. Thus, we should enlarge the input from the nation, increase the source of educational outlay, improve the ability to transfer technology to labor, adjust the regional problem, and give priorities to the west of China.