Abstract
Education is a country’s livelihood plan. It provides manpower and technology for development. The role of education in promoting the economy has been recognized by most countries, and the mutual influence of education and economic growth will increase with the improvement of the country’s economic level. Obviously, the leading role of education in the economy has been valued by more countries. Shandong Province, being a big economic province is also a big province for college entrance examination, but there is still the problem of uneven distribution of economic resources. In order to make suggestions for the financial education expenditure in Shandong Province, it is of far-reaching significance to analyze the relationship between financial education expenditure and economic growth (gross regional product). Therefore, this article proposes two research questions. Question 1: Calculated on a per capita basis, is there a long-term equilibrium relationship among the four variables of fiscal education expenditure, scientific undertaking expenditure, total investment in fixed assets of the whole society, and gross regional product? To solve this problem, this article proposes two hypotheses. H0: There is no long-term equilibrium relationship between the four variables. H1: There is a long-term equilibrium relationship between the four variables. Question 2: On a per capita basis, what kind of work does fiscal education expenditure have on economic growth? To solve this problem, this paper proposes two hypotheses. H0: Fiscal education expenditures promote economic growth. H1: Financial education expenditure has a restraining effect on economic growth. In response to question 1, this paper uses Eivews to find a long-term equilibrium relationship between the four variables through the use of ADF test, E-G two-step method, and theoretical research. Aiming at problem 2, this paper uses Eviews software to establish an error correction model and finds that fiscal education expenditure has a promoting effect on economic growth, and for every increase of per capita fiscal education expenditure by one unit, the average per capita GDP increases by 6.688. And theoretical research also supports the results of data analysis. At the end of the article, policy recommendations for the development of financial education are put forward.
Highlights
Zhang Zhinan tested the economic growth effects of different sources of education funding based on provincial panel data, and the results showed that education fiscal investment exert significant effect on improving the quality of economic growth [8]
(3) Jiang Minghui used unit root test, Granger causality test and error correction model (ECM) to carry out analysis on the relationship between education investment and economic growth in Shandong Province from 1979 to 2004
Conclusions (i) By including the per capita scientific expenses and the per capita total investment in fixed assets of the whole society, this paper shows that there is a long-term equilibrium relationship between per capita fiscal education expenditure and per capita GRDP
Summary
The development of education has always been the top priority of Shandong Province and the whole country. Education plays an important role in improving people's overall quality, narrowing regional economic differences, eliminating the gap between the rich and the poor, and building a harmonious and friendly society. It is undeniable that the overall development of education in Shandong Province and even in China is still relatively backward, and there are still some problems such as unreasonable levels and insufficient allocation of educational resources. At the 19th National Congress of the Communist Party of China held in 2017, General Secretary Xi Jinping emphasized, “Giving priority to the development of education and building a strong education nation is the basic project for the great rejuvenation of the Chinese nation. To realize General Secretary Xi Jinping's expectation of education, that
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