Empirical Study on the Relationship Between Economic Growth and Education Investment in China

According to the new theory of economic growth,human capital and technological progress are the endogenous variable of economic growth,while education is the main channel of accumulation in human capital.This paper tested the relationship between China's economic growth and investment in education from 1994 to 2003 with cointegration and granger test.The Cointegration test made it clear that from 1994 to 2003,there was a long stable equilibrium between economic growth and investment in education.Granger test indicated that only investment in education caused economic growth,while the rapid economic growth has not brought a corresponding increase in education investment.