Authors:
Dan Hu
1
and
Jing Liang
2
Affiliations:
1
Hu Bei Business College, Wuhan, China
;
2
Chongqing Vocational College of Transportation, Chongqing, China
Keyword(s):
Investment In Education, Spillovers, Transmission Mechanism, Log-Linear Model.
Abstract:
Education investment is a key factor driving China’s economic growth and an important driver of economic transformation and upgrading. Based on this, this paper puts forward three hypotheses on the mechanism of education input promoting economic growth, using China’s 2001-2019 statistics, a log-linear model, and SPSS data processing software to analyze the intrinsic mechanism of China’s education input promoting economic growth. The results show that (1) the increase in educational input promotes economic growth, to a certain extent, through the intermediary mechanism of increasing scientific and technological output, and educational input improves the transformation of scientific and technological achievements, which makes economic growth gain the necessary growth driver, and then promotes economic development. (2) Educational inputs promote economic growth through the mediating transmission mechanism of human capital, which in turn affects production efficiency. Education investmen
t raises the level of human capital, which makes economic growth obtain the necessary human capital supply and thus improve the level of economic growth. Recommendations are also made in terms of both educational investment and educational equity.
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