The Mechanism Of Different Types Of Education Promoting Economic Growth And The Empirical Validation In Hunan Province

Education can not only bring up a lot of different levels, different types of talent for the country, and It is the solid foundation of national sustainable development. Today, almost all countries take the education as a core component of sustainable development and enhancement of overall national strength and improve the competitiveness of the important strategic measures. The seventeenth the report put the education in a very prominent place. The report points out that the education fair is an important basis for social justice. General secretary put the education on the six major tasks. Give priority to the development of education and manpower resources power.Modern economic growth studies show that, education is a key factor of long-term growth of economic. Between the educational development and economic growth there exists positive feedback mechanisms. On one hand, educational investment accelerated economic growth, on the other hand, economic growth puts up higher demands on the development of education. In this positive feedback mechanism, education and the economy are promoting common development with each other. Also, different levels of education have different degrees of impact on economic growth. Basic education has high spillovers to help reduce the differences in labor income distribution as well as wages, to promote better long-term economic growth; On one hand, higher education affects economic growth through enhancing and optimizing the quality and structure of human capital, on the other hand, higher education drives the national economy by increasing the total national investment; vocational education is increasing economic growth by changing the structure of national income. At the same time, the way different levels of education increase economic growth existing differences, while there is also inherent in common.Based on the quantitative analysis on the relationship between the Hunan education development and economic growth, by constructing the dynamic econometrics model, the paper analysis the long-term and short-term relationship between development of the education and economic growth from 1978 to 2008. First, the paper analysis the pertinence between the pertinence levels education and economic growth by the OLS test. By constructing the VAR Model, We analysis the five variables (economic growth, primary education, secondary education, professional education, higher education) by long run cointegration equilibrium correlations, Grange causality relationship and impulse response function (IRF).The paper provides the scientific decisions and public information service for relevant departments. The paper search the economic growth mode which improving investment in education. And establish the education investment system which can promote the steady economic growth. So it can promote the interaction of education development and economic growth.