The Effect of Education on Economic Growth - An Empirical Research Based on the EBA Model

Based on the endogenous growth theory and by employing the extreme boundary model, this paper adopts the provincial panel data of China's 30 provinces from 2000 to 2010 to conduct an empirical research on education's significant '' robust '' relationship with economic growth. The research result shows that education expenditure, the number of college students per hundred people and the number of graduates of secondary polytechnics have a significant '' robust '' impact on economic growth which is immune from disturbance; in contrast, special education graduates, primary school graduates, high school graduates and junior middle-school graduates have no significant '' robust '' relationship with economic growth. Then on the basis of the empirical result, this paper puts forward relevant policy recommendation of increasing education spending to promote economy's sustainable development.