Education Investment And Economic Growth

In recent years,China’s economy has continued to develop,and education investment has played a huge role in it.With the continuous advancement of "double first-class" universities,China’s soft power has made great achievements.Since the emergence of the concept of education investment,education investment and economic growth have a long-standing relationship.The increase of education investment can optimize the structure and quality of social human resources,and then become an essential element of economic growth;in turn,the continuous economic growth provides continuous power for education investment,thereby improving the education level of residents.Therefore,economic growth and education investment are inseparable,which can also become an educational economic effect academically.Based on this,under the guidance of the national strategic guidelines and the theoretical framework of educational economic effects,Wenzhou has gradually increased education investment,with the goal of continuously optimizing the structure of human capital,thereby promoting the economic growth of Wenzhou.Therefore,this article takes Wenzhou’s education investment and economic growth as the research object,focuses on the internal relationship and finds the role path between education investment and economic growth.First,this article introduces the research background and significance of the research on education investment and economic growth.It reviews the current research progress from the perspectives of education industry and economic development,human capital theory,economic development related factors,and China’s education investment status.It also explains the important concepts and related theories,including the concepts of education investment,human capital and economic growth,as well as the related theories of human capital,economic growth and public goods.Second,this article analyzes the current situation of education investment and economic growth in Wenzhou,focusing on the level of enrollment,education input intensity,economic development characteristics,economic growth,and economic structure.There are still some problems with the impact of education investment on economic growth,such as the low total amount of education investment,the slow economic growth rate of Wenzhou,and the strong role of consumption and exports.Next,the VAR model is designed based on the sample data from 2000 to 2018,Granger causal relationship test,and the impact of Wenzhou’s education investment on economic growth was empirically analyzed according to the five variables of real GDP,education investment,capital investment,labor investment and technological level.Finally,this paper summarizes the research results and puts forward relevant countermeasures and safeguard measures.