The Value-added Effect of Educational Value Chain: An Empirical Study of Jiangsu Province

Abstract

Educational value chain lies in that education can enrich professional knowledge of laborer which will future increase labor productivity, that education can improve the capabilities of the learners to resolve problems and to relearn knowledge to master new techniques and handicrafts, and that education can sharpen laborers' competence for key science and technology programs to transform science and technology into real production. Under the influence of the educational value chain, education features economic value added effect including wealth effect, income effect and science and technology effect. This paper carries out a grey correlation analysis between the educational investment and regional gross product from year 1990 to 2007 in Jiangsu province to prove that education has wealth effect. In Jiangsu province the proportion, the rate of the family education investment upon economy is 8.53%, fiscal education investment upon economy 8.46% and gross education investment upon economy 17%.