Empirical Research on the Effects of Public Education Investment to Economic Structure in China

This article focuses on the empirical research about the effects of public education investment to economic structure by using econometric tools of cointegration analysis,VECM,impulse response and residual decomposition. The results indicate:public education investment has positive long-term equilibrium relation with three-level industry,and positive effects to the third industry is the strongest; impulse response of three-level industry to the public investment shock is positive; public investment can better explain the growth errors of the second and third industry than the first,but they are not significant. So we suggest broadening investment sources and adjusting structure of public education investment.