The direct effect and spillover effect of education investment on economic growth: Based on the application of Feder model

The relationship between educational investment and economic growth has always been a classic issue in educational economics research. Based on the development statistics of China from 2001 to 2019, the paper constructs the Feder model, uses the perpetual inventory method to measure capital, and uses SPSS data processing software to analyze the relationship between education investment and economic growth. The results show that: (1) The value of γ is positive, indicating that education investment has a positive promoting effect on economic growth, and the effect is very significant. With every 1% increase in education investment, the economy will increase by 0.52 percentage points. (2) δ value is 2.54, that is, every percentage point increase in education investment, the non-education sector increases by 2.54 percentage points; Education investment has a positive spillover effect on the non-education sector, and the effect is significant. (3) θ=3.762, indicating that the factor productivity of the education sector is greater than that of the non-education sector.