Growth effects of education acquisition variance — Empirical evidence from China

Human capital is an important factor affecting a country´s economic growth while education is the main channel to form human capital. Based on China´s provincial panel data from 1987 to 2008, this paper investigates into the relation between economic growth and education acquisition. The empirical study denotes that human-capital-based product function is convex, which denies the traditional hypothesis of linearity and that education ac economic growth changes coincidentally with acquisition variance, provided the average education year of people. Therefore, the author proposes to adjust the structure of education expenditures while increasing education expenditures.