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China 's investment in education , economic growth and employment problems of SD model

Author: LiJianHua
Tutor: WangQiFan
School: Fudan University
Course: Management Science and Engineering
Keywords: economic growth educational investment human capital, unemployment system dynamics
CLC: F224
Type: PhD thesis
Year: 2005
Downloads: 2713
Quote: 6
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Abstract


With the rapid development of science and technology and the coming era of knowledge economy, the strategy of "revitalizing the nation through science and education "has been proposed by our country. It has been a common idea that more funds should be put into education, and the national quality should be enhanced in order for China to remain solid in the increasingly drastic international competition day by day, and ultimately realize the great rejuvenation of the nation. The Education Law of the People’s Republic of China requires that more investment should be made in education and according to The Outline of the Reform and Development of Education in China, the financial input in Education should constitute as much as 4% of the GDP of the year 2000, but the input in education has actually never reached this regulation in the past few years, and thus has resulted in a wide gap between China and many other developed and developing countries. Based on the fact that China is facing tremendous unemployment pressure, and using theories, views and methods of System Dynamics (SD), Endogenous Economic Growth and Labor Simplification, this article endeavors to construct an SD model for the educational investment, economic growth and employment in China. By means of policy simulation and with quantitative and qualitative reasoning, the article is focused on how to increase investment in education in keeping certain rate of unemployment, and how to convert labor force resources into human capital, exploring a feasible way to boost the economy rapidly and continuously.Chapter One presents the method, theory and practical meaning of this dissertation. Issues concerning economic growth, economic growth & education and economic growth & unemployment are discussed and explored respectively in Chapter Two, Three, and Four. In Chapter Five, a model of the issues covering educational investment during 1995-2002, economic growth and unemployment is constructed according to the theory and method of SD, and the conclusion that the model is stable and reliable is reached through positivistic simulation. Based on the constructed model and the 2002 data as the radix, Chapter Six presents a policy

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