Restructuring and Upgrading, Higher Education and Economic Growth: Empirical Evidence from Jiangsu: 1999-2011

Under the background of economic restructuring and upgrading, whether there exists a stable causal relationship between higher education and economic growth is a significant foundation for making policy of higher education development.. Based on the literature review and statistic data of Jiangsu province from 1999 to 2011, the relationship between financial input and economic growth in higher education is under Correlation analysis, Co-integration test and Granger causality test. The results show that after the expansion of higher education in 1999, there is a significantly positive correlation between higher education financial input and economic growth in Jiangsu Province, and the development of higher education is the Granger cause of economic growth. Therefore, China should increase regional higher education input to achieve dynamic matching and interaction between higher education and regional economy.