Research on the Influence of Higher Education on Economic Growth

Abstract

In the current society, the relationship between education and the economy is more and more inseparable. Under the dual pressure of economic development and the cultivation of high-level innovative talents, measuring the relationship between China's higher education and economic growth and making it better serve the socialist modernization construction is particularly important. Under this economic situation, the prerequisite and necessary condition to realize the new upgrading of China's economy are to realize the upgrading of China's higher education first to provide the society with talents with rich knowledge and high innovation ability.Based on the theory of human capital and economic growth-related theory, this paper reviews the relative literature on the relationship between economic growth and development of higher education and analyze the current situation about higher education in China from qualitative and quantitative perspectives through the methods like Granger causality test, the economic contribution rate and so on. The Granger causality test showed an obvious interactive relationship between higher education development and economic growth, and the degree of coordination between them showed a rising trend year by year. It was concluded that higher education and economic growth were mutually promoting: Economic development and investment in education will promote the development of education, which in turn will promote economic growth as well.