Abstract Macro-economic data from 1981 to 2010 of China and state space model are used to study the dynamic relationship between the fiscal spending on education and economic growth .The conclusion is that there exists a long-run equilibrium relationship between the two variables. The contribution of fiscal spending on education to economic growth exists significant time variation, due to the impact of the economic system, education system, financing structure and the international economic environment and so on. Finally, we find the reasons according to the change trend and propose to increase financial input in education, optimize the educational structure of allocation and improve the funds utilization and so on.
2014, Vol. 31 
