Abstract: In the process of economic development, there is a close relationship between education investment and economic growth, they coexist, constraint, influence, and promote with each other in long-terms. In this paper, the present situation of education investment and macroeconomic growth situation in Xinjiang were analyzed, the results show that Xinjiang education and economic development are unbalanced between regions, the education quality, structure and the proportion of expenditure of education funds are not harmonious. By using the ordinary least squares and the descriptive statistical analysis, we empirically tested the relationship between education investment and economic growth. Results show that there is a certain causal relationship between education investment and economic growth, but this kind of causal relationship is not symmetrical. The education investment growth does not play a significant role in economic growth, the contribution of education investment to economic growth is relatively low, the education input is not the granger cause of economic growth in Xinjiang. Based on the above results, we put forward suggestions on the coordination development of education investment and economic growth in Xinjiang as follows:for the less developed areas, in order to realize the benign interaction between education investment and economic growth, we need continuing support of national policy, material and manpower, and to increase the education of all types and at all levels, i.e., the education improvement should not only be embodies in the field of basic education, but also the higher vocational and higher education field. Only by comprehensively enhancing the investment in education, can we thoroughly improve the level of education in underdeveloped areas, and further promote the economic growth.

Key words: education investment, economic growth, model