Research on the Effects of the Investment in Education and Improvement of Human Capital on the Economic Growth of Western China——Case Study of Guizhou Province During the Period 1950—2008

Based on co-integration and vector error correction model,this paper empirically studies long and short relations between investment in education and economic growth in western China using time series data from Guizhou province during the period 1950—2008.The results suggest that the investment in education is indeed the real cause of economic growth in the long run.And,the economic growth has obvious effects on different education indicators.Moreover,only governmental education expenditure has negative effect on economic growth in the short run.The quantities of teachers and students in the higher education have no effect on economic growth in the short run.