Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 20 December 2021
An Empirical Study of National Education and Economic Development Based on a Variable Coefficient Model
Liuyuan Han, Guangming Deng
Guilin University of Technology, China
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10.31014/aior.1992.04.04.392
Pages: 39-47
Keywords: Economic Development, National Education, Indicator System, Variable Coefficient Model
Abstract
This paper studies the relationship between the level of national education and economic development in 31 provinces and cities in China from 2012 to 2019. Principal component analysis is used to comprehensively evaluate the level of national education, on the basis of which a variable coefficient model is tested and a constant coefficient model is established for comparison. The results show that: (1) there is a co-integration relationship between the level of national education and economic development, i.e. the two are in equilibrium in the long run. (2) In some provinces and cities in China, economic development is positively correlated with the level of national education, and some provinces and cities are negatively correlated. (3) Economic development has different effects on the level of national education in the east, middle and west. (4) Economic development and national education level are positively correlated in the average sense in China.
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