In order to effectively analyze the dynamic relationship between education and economic development, an empirical study on the relationship between education and economic development based on the PVAR model is proposed. This article expounds on the principles, assumptions, identification, and estimation methods of the PVAR model, takes the education level and economic development level as the research object, explains the corresponding variables, and selects the indicators. Using Cobb–Douglas production function as a theoretical model, this article analyzes the theoretical relationship between the education level and economic development level. Based on this theoretical relationship, this article makes an empirical analysis on the relationship between education level and economic development level using the PVAR model. The results show that, on the whole, economic development can drive the development of education, but there are obvious regional differences in the impact of economic growth on the development of education. The impact of economic growth in the eastern region on education is significantly higher than that in the central and western regions. There is an interactive relationship between education level and economic development level, and there is a certain incubation period for education level and economic development level to play their role.