Research on Effect of Public Education Policy on Economic Growth in China Based on Human Capital Accumulation Model

Research on Effect of Public Education Policy on Economic Growth in China Based on Human Capital Accumulation Model

Hang Fang Yujing Chu

School of Economics and Management, Tongji University, Shanghai 200092, China

Institute of Tourism, Shanghai Normal University, Shanghai 201234, China

Corresponding Author Email: 
chuyujing@163.com
Page: 
290-309
|
DOI: 
https://doi.org/10.18280/ama_a.540212
Received: 
27 May 2017
|
Accepted: 
18 June 2017
|
Published: 
30 June 2017
| Citation

OPEN ACCESS

Abstract: 

This paper establishes a human capital accumulation model for both basic education and higher education, and analyses the effect of public education policies on economic growth. The analysis suggests that: the overall increase in public education spending crowds out the overall private education spending and enlarges the share of basic education in household budget; the increase in public spending on basic education may stimulate the private spending on both stages of education, and brings about greater public spending on higher education. Through the empirical research on the relevant data of China, it is revealed that the economic growth of China is mainly driven by physical capital accumulation, but the economic growth effect of education investment, especially basic education investment, must not be ignored. Moreover, the public policies favouring basic education investment has significant positive effect on the economic growth, while the expansion of higher education enrolment has negative effects.

Keywords: 

Public education policy, Human capital accumulation, Economic growth.

1. Introduction
2. Modelling
3. Equilibrium Solution and Comparative Static Analysis
4. Case Study and Regression Analysis
5. Conclusion
Acknowledgements

This work was supported by the Social Science Foundation of Shanghai under grant No. 2017BJL003.

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