Different Laborer's Stock of Education Levels and the Economic Growth: A Granger Causal Analysis of China from 1981 to 2006

This paper uses co-integration analysis and Granger causal relation test to empirical study the relation between different laborer's stock of education level (primary, secondary, college, and graduate) and economic growth of China from 1981 to 2006. The results indicate that the dynamic equilibrium relation only exists between laborer's stock of secondary and college educated and economic growth in China. Meanwhile the Granger causal is only significant from laborer's stock of secondary education to economic growth.