Empirical Study On The Interaction Between Higher Education And Economic Growth Of Shanxi Province

Economy and education are two bases for the development of modern society,therefore,how to measure the relationship between higher education and economic growth is quite important in both theory and practice.With the advent of knowledge economy,higher education and economic growth are increasingly closely connected.On the one hand,economy provides higher education with material base and support.On the other hand,higher education is the momentum of economy and promotes it.Since the twentieth century,Shanxi Province has realized leap-forth development both in higher education and economic growth,and there exists plenty of studies and papers on the interaction between higher education and economicn growth both domestically and overseas.Based on the theory of human capital and that of knowledge economy,along with the theory about the interaction between and economic growth,this paper is an empirical study on the interaction between higher education and economic growth in Shanxi Province using data from 2000-2013 by Granger Causality Test.Thus it will come up with practical advice to enhance the two factors’ interaction.From the empirical study,it can be concluded that higher education and economic growth are mutually promoted and it presents decent developing trend.In the end,the paper comes up with two suggestions--increase investment in education and adjust the structure of higher education.