Exploring the Synergy between Basic Education and Sustainable Economic Growth: Insights from Spatial Analysis of Chinese Provincial Panel Data for Innovation-Driven Development

Abstract

The interplay between basic education and sustainable economic growth is increasingly recognized as a critical driver of innovation and development, capturing the attention of policymakers worldwide. This study leverages panel data from 30 Chinese provinces (2002–2019) and employs the Panel Vector Autoregressive Model (PVAR) and Spatial Durbin Model (SDM) to explore the dynamic interaction and spatial effects between these two factors. The findings reveal that: (1) Basic education and sustainable economic growth have a significant bidirectional relationship, forming a virtuous cycle that fosters long-term development; (2) There is notable spatial autocorrelation in provincial basic education and economic growth across China, with pronounced spatial heterogeneity in education development; and (3) Basic education demonstrates a significant spatial spillover effect, where improvements in one province not only enhance local economic growth but also positively influence neighboring provinces with similar economic and geographical profiles. These insights underline the importance of strategically integrating basic education into sustainable economic growth initiatives. The study provides a framework for optimizing the interaction between education and economic development, offering policy recommendations to enhance the role of basic education as a catalyst for regional and national innovation-driven growth. These findings are particularly relevant to industries focused on commercial biotechnology, where education is pivotal for fostering a skilled workforce and enabling sustainable advancements.