An Empirical Study on the Relationship between Education and Economic Development Based on PVAR Model

Abstract

In order to effectively analyze the dynamic relationship between education and economic development, an empirical study on the relationship between education and economic development based on the PVAR model is proposed. This article expounds on the principles, assumptions, identification, and estimation methods of the PVAR model, takes the education level and economic development level as the research object, explains the corresponding variables, and selects the indicators. Using Cobb–Douglas production function as a theoretical model, this article analyzes the theoretical relationship between the education level and economic development level. Based on this theoretical relationship, this article makes an empirical analysis on the relationship between education level and economic development level using the PVAR model. The results show that, on the whole, economic development can drive the development of education, but there are obvious regional differences in the impact of economic growth on the development of education. The impact of economic growth in the eastern region on education is significantly higher than that in the central and western regions. There is an interactive relationship between education level and economic development level, and there is a certain incubation period for education level and economic development level to play their role.

The interaction of digital economy, artificial intelligence and sports industry development --based on China PVAR analysis of provincial panel data

“…The impulse response function (IRF) reflects the dynamic effect of a shock of one unit of standard deviation in the imposed variable on the other variables. Specifically, it is first to give the impact of a unit positive standard deviation to the error term and then observe the changes of endogenous variables in subsequent periods [ 59 ]. IRF directly reflects the dynamic interaction between endogenous variables and helps analyze the time delay effect between variables [ 60 ]。In this work, the impact period is set to 10 periods, and the impulse response analysis of the digital economy, AI, and sports industry is carried out through 500 Monte-carlo simulations.…”

Does Education Affect Economic Growth? A Re-Examination of Empirical Data from China

“…However, some scholars have argued that there is a non-reciprocal relationship in the interaction between educational and economic development: the effect of the economy's promotion effect on education is significantly greater than the effect of education's promoting effect on the economy, while the improvement of the education level has a positive effect on economic development only when a certain threshold is breached [23]. Some studies have argued that in specific economic development periods, the rapid development of education's rapid development has an inhibiting effect on the economy [24]. The interaction between different education levels and the economy exists, with significant mutual promotion between primary and secondary education and economic growth.…”

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