The relationship between cultural capital and economic growth in China

The relationship between cultural investment and economic growth is a hot spot of economic research. This paper applies the Perpetual Inventory Method to estimating the cultural capital stock for the years 1978–2008 in China, and looks into the relationship between cultural capital stock and economic growth with cointegration analysis and Granger causality test methods. The empirical results show that there is a fluctuated relationship between China´s cultural capital and economic growth in short term, and an equilibrium relationship in the long run. When the cultural capital stock increases by 1%, GDP will increase 0.71%.