Effect of Investment in Higher Education on Economy Growth of China

Based on the standpoint that investment of higher education is a producible investment has been acknowledged by societies in China, the relationship between higher education and the increase of economy expressed by producible function is analyzed with regressive analysis with the data from 1990 to 2000. The analysis shows that, compared with capital, the investment in higher education has had much less contribution to the economic growth of China, which is closely related to inadequate investment in higher education and implying the necessity to increase investment in higher education and enrollment of students.