Educational funds, educational level and human capital — Empirical analysis based on inter-province panel data of China

This article takes advantage of the panel data of China´s 30 regions in 1996-2008 to constructs empirical models between the educational funds and the educational level, human capital, compensation of employees. And the relations are tested between variables in the empirical model. It is proved by the study results that increasing the regional educational funds investment can improve the educational level of the local population, and also is an important approach to improve the regional human capital stock and compensation of employees.