The Connection between Education Input and Economic Growth―An Empirical Analysis Based on Eastern, Central and Western Cities

Abstract

This paper applies the mathematical model research method, based on the Cobb-Douglas production function model, and selects 18 samples from the east, middle and west to study and analyze the relationship between education input and economic development. This study starts with the total investment in education and is divided into three aspects according to its source: financial education funds, private education funds and other non-financial education funds. At the same time, the employment population and physical capital are introduced to analyze the factors affecting economic growth more comprehends. By analyzing the statistical results, the following conclusions are finally obtained: on the one hand, the economy of each region will be positively promoted by the financial education funds, and the higher the economic level of a region is, the weaker the region is affected by the financial education funds; private education funds generally have no significant impact on the economy of a region; while other non-financial education funds have a positive effect on areas with high economic levels. On the other hand, for the western region where the economy is backward, there is a greater demand for both physical capital and fiscal education funds; while the eastern and western regions provide a large number of jobs due to developed industries and services. There is a certain demand for the labor force. At the end of the article, based on the above analysis, some suggestions were provided to the central and local governments.