Hang Fang | Yujing Chu*
OPEN ACCESS
This paper establishes a human capital accumulation model for both basic education and higher education, and analyses the effect of public education policies on economic growth. The analysis suggests that: the overall increase in public education spending crowds out the overall private education spending and enlarges the share of basic education in household budget; the increase in public spending on basic education may stimulate the private spending on both stages of education, and brings about greater public spending on higher education. Through the empirical research on the relevant data of China, it is revealed that the economic growth of China is mainly driven by physical capital accumulation, but the economic growth effect of education investment, especially basic education investment, must not be ignored. Moreover, the public policies favouring basic education investment has significant positive effect on the economic growth, while the expansion of higher education enrolment has negative effects.
Public education policy, Human capital accumulation, Economic growth.
This work was supported by the Social Science Foundation of Shanghai under grant No. 2017BJL003.
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