Investment in Education,Human Capital and Economic Growth——Empirical Analysis Based on VAR Model

The relationship between human capital and economic growth is the hot focus in the study of economics,so this article makes use of 1980—2007 time series data in our country to make a VAR model on the basis of a comprehensive study about domestic and foreign researches on relationship between human capital and economic growth,and then uses a variety of dynamic economic methods to make empirical researches on the impact of changes in human capital investment on economic growth.The results show that there is a stable general equilibrium relation between China's stock of physical capital,education spending and economic growth.In the short term,compared with the stock of physical capital,the effect of human capital investment on economic growth is smaller.But in the long term,its impact on economic growth will be greater than the stock of physical capital,and compared to economic growth itself,human capital has been a major factor affecting economic development.Therefore,the increase of education expenditure and other human capital will improve the economic growth in the whole.