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Research on the Causality Relationship between the Development of Higher Education and Regional Economy in Southern Region of Jiangsu Province

Author: LuoZuo
Tutor: CuiYuPing
School: Suzhou University
Course: Educational Economy and Management
Keywords: Southern Jiangsu province higher education Cointegration relationship Granger causality
CLC: F127;F224
Type: Master's thesis
Year: 2011
Downloads: 90
Quote: 0
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Abstract


In the era of rapid economic development, the relationship between higher education and the economy has reached unprecedented closely than ever before. For the most dynamic region of Jiangsu Province-the Southern region, the higher education and regional economic relationship is the‘bright spot’of this area. The southern region is the overall strength of China’s higher education and one of the regions which have the highest concentration on colleges and universities. The universities here have been nurturing a lot of human resources for regional economic development, social progress and provide a strong impetus. Meanwhile, the highest level of regional economic development provides sufficient human resources, material and financial support to the higher education. This paper is based on the relationship of regional economic development and the higher education, then analyses the data in 1978 and 2009 time sequence, uses the theory of cointegration, granger causality tests and other empirical research methods to research the causal relationship between the regional economy and higher education. The result of the study is as follows.1. Cointegration relationship exists between the Higher Education (the students of the number sequences) and regional GDP (GDP added value of the number sequence).2. In the short term, the added value of Suzhou’s GDP, increased by 1% next year will result in the number of students to 0.4%; the added value of Changzhou’s GDP for every 1% increase will result in the number of students to 1.05%; for the Southern region as a whole in terms, GDP increased by 1% value-added, next year will lead to changes in the number of students is 0.24% or so. In the short term, Wuxi, Nanjing, Zhenjiang’s increase of the added value of GDP had no significant effect on higher education.3. Wuxi, Nanjing’s GDP added value and the southern region as a whole is the Granger cause of the number of students in higher education; the number of students of the higher education in Wuxi, Nanjing and the southern region as a whole, is not the Granger cause of added GDP value; there is no Granger cause between the added value of Suzhou’s, Zhenjiang’s GDP and the number of students in higher education; the added value of Changzhou’s GDP and the number of students in higher education are mutually Granger causality.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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