The Impact Of Public Education Expenditure On Human Capital, Growth In Xinjiang

To keep economic growth is the main task for a country to develop; technological progress is the fundamental driving force of economic growth, and human capital, as the main factor of influenting the growth, has been widespread attention by people. This paper introduces the domestic and international economic growth, human capital and related research, defines the concept of human capital, on the basis of the nature of human capital, that investment in human capital needs, to self-enhancement and a positive external effect, with Dependent, cumulative. Differences between human capital, and its value is constantly changing, so it's difficult to measure human capital. This article outlines the theory of human capital and economic growth of important theories and models, these theories and models to analyze human capital and economic growth in China relations.Education is the main way for human capital formation, so to analysis human capital's role of economic growth, this paper established a CGE model about expenditure on education of Xinjiang. The model contained education spending and human capital module, trade modules, production modules, input demand module, the investment module, balance module and income and expenditure module.The preparation of macro-social accounting matrix of Xinjiang (SAM), according to the needs of this study will be carried out decomposition of the macro SAM, developed micro-social Accounting Matrix. Use of baseline data in 2007 expenditure on education in Xinjiang set three conditions (growth rate of total labor force in social change, rural labor force unemployed into the labor market and government spending for special education), in the simulation of the three conditions spending on education increased by 15% and 30%, Xinjiang, human capital and changes. Simulation showed that: when the labor market supply is constant, increased state financial expenditure on education has no effect on total labor supply, but the impact on labor structure. When the importance of basic education or basic work in the labor force increases, Labor supply will increase, and rural labor, productive workers and professional and technical personnel has not increased, natural growth will be different degree of increase. For the wages of workers, when the labor supply of social change, increased investment in education, increase the quality and skills of workers. When social workers in the labor force engaged in basic work to increase funding for education spending increases would make the whole society a little labor wages.But the labor force engaged in basic wages for labor will increase. Increase in education spending when funding for the overall operation of the macro economy of Xinjiang is a positive active role in increasing educational investment to GDP, total consumption, total investment, import and export, residents have disposable income and savings. On the macroeconomic indicators influence, and sometimes the impact of some macroeconomic indicators play a small role, but in general, whether it is 15% increase in education funding or 30%, compared to the overall macroeconomic indicators for the base year, there is a strong positive effect of increasing education investment.