The Impact of Financial Investment in Education on Economic Growth

Abstract

Against the background of globalization and economic development, and transformation, the link between education, financial investment, and economic growth has been widely discussed. This research investigates how government expenditure on education influences economic growth, utilizing a two-way fixed effects model and panel data. The analysis indicates that fiscal investment in education has a positive role in promoting economic growth. Based on this, this paper outlines a series of well-thought-out recommendations designed to address key challenges and foster positive change in the field under discussion: First, further increase the financial investment in education, especially in the field of basic education and vocational education, to consolidate the "human capital foundation" of economic growth. Second, optimize the allocation of educational resources, establish a dynamic adjustment mechanism, adjust educational content in real time according to industrial needs, promote online education and short-term training projects, and improve the timeliness and pertinence of education investment. Third, pay attention to the improvement of education quality, improve the salary and welfare of teachers and attract high-quality talents to participate in the cause of education, and encourage society and enterprises to participate in the public welfare of education.