The Intrinsic Mechansim of Education Promoting Economic Growth

Most scholars argued that higher education has a positive impact on the growth of the economy. Therefore, understanding the internal mechanism between education and economic growth can give us a clearer and better way of where to focus future changes to promote economic growth. This study implemented the systematic literature review method by searching the Google Scholar database to evaluate the intrinsic mechanism of education promoting the economic development, mainly analyzing and classifying all influencing factors. The findings show that there are 18 factors, from 4 aspects: educational institutions, the government, companies and society, influence education in promoting economic development. Besides, three suggestions are put forward for future research to prove the intrinsic mechanism, which is based on the DSBM (Dynamic Slacks-Based Measure) model, the use of surveys and quasi-experimental design, as well as other diverse influencing factors such as market structure and enterprise size, sustainable supply chain, and so on. Finally, recommendations which are beneficial for education to promote economic growth and development are made for higher education institutions, the government, companies and society.