An Econometric Analysis of the Relationship between Education and Economic Growth in China

Historically, economists had already emphasized the importance of human capital to the development of a country. Under the contemporary knowledge-based socio-economic background in China, education, as an essential and fundamental element in human capital development, is reasonable to be connected with economic growth. To testify this argument and figure out the inner relationship, I built a linear regression model by using China's provincial data in the past twenty years and the result generated by Eviews has confirmed a convictive positive correlation between education and economic growth in China. This research as well attests the significance of China's strategy "develop the country through science and education". Additionally, the result of this research that education takes positive effect on national development is similar with the achievement of numerous previous international published researches. Therefore, the improvement of education system is a significant step to realize our country's great renaissance.