The Influence of Higher Education on China’s Macro-Economy

Abstract

Education contributes to economic growth. China’s economy has shifted from high growth to higher-quality development, creating a new demand to reform and develop higher education. This paper first measures the composite index of higher education in China from 2009 to 2019 by combining the Cobb-Douglas production function and Denison’s economic growth factors analysis method. Results showed that higher education in China has an increasing contribution rate to economic growth from 2009 to 2019 but is still lagging behind developed countries. Second, it analyzes the new trends of higher education development in developed countries, compares the development models of higher education in different countries, and reveals the problems in China’s higher education. Finally, it examines the impact of higher education on China’s macro-economy from the human capital theory and the economies of scale theory. Furthermore, it proposes strategies for the higher-quality development of higher education and provides a reference for adjusting and optimizing the development model of higher education.