Research on the Relationship between Financial Investment of Higher Education and Economic Growth in Fujian Province

The theory of human capital holds that education investment has economic effects. Education investment provides labor and high-tech talents for the society through the transmission mechanism of human capital, thus promoting the upgrading of industrial structure and economic growth. In order to determine the relationship between financial investment and economic growth of higher education in Fujian Province, this paper analyses the relationship between financial investment of higher education and economic growth in Fujian province for 2000-2015 years by means of stability test, co-integration analysis and error correction model. The results show that there is a long term co-integration relationship between the two. That is, when the financial investment of higher education increases by 1%, the economic growth will increase by about 0.915%. It can be seen that the financial investment of higher education has a great effect on the development of Fujian's economy.