Education policies and regional development in China

Abstract

Many previous studies show that education is one of a small number of fairly important determinants of economic growth. In addition to testing whether this relationship holds true in China, this paper attempts to address an equally important issue, that is, what level of education is more compatible with the needs of the current stage of development of China if education is important. To answer this question, we have modified the convergence model so that the effects of any change in education inputs on income and inequality are both measurable from the model. By using this model, we compare alternative educational policies in achieving the targets of raising per capita income and reducing regional equality in China.