The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China

In recent years, China’s rapid economic development has been accompanied by an increase in education spending, resulting the accumulation of human capital. However, there is ongoing debate regarding whether and how expenditures have fostered innovation science technology (S&T). This study uses panel data from 31 Chinese provinces, cities, autonomous regions 2006 to 2015 look at relationship between capital development, S&T innovation. It seeks shed light on this problem. Our results reveal that expenditure a significant positive impact innovation, plays mediating role relationship. Specifically, can not only enhance ability educated but also strengthen their accept apply new technologies, leading transformation transmission knowledge. Furthermore, our shows greater than formation. The findings important policy implications. Given effective means promoting it recommended government continue boost investment education, convenience consumption, advance supply-side reform. Additionally, policymakers should consider structure affects as well different impacts household public expenditures, economy. conclusion, provides evidence supporting fostering China. By investing China build its capital, promote social progress.