Fiscal Expenditure and Education Quality in China: A Regional Heterogeneity Analysis

Yiyang Chen and Fuxin Zhang
Additional contact information
Yiyang Chen: Shanghai Foreign Language School Affiliated to SISU

European Journal of Marketing and Economics Articles, 2018, vol. 1

Abstract: In this paper, we explore whether fiscal input brings the raise of regional education quality. To discuss this relationship, we employ Chinese provincial panel data ranged from 2008-2016. By constructing a two-way fixed effect model, we find that provincial education quality is positively associated with the fiscal expenditure, and more specifically, educational expenditure. This correlation is robust even we consider other important factors such economy growth, industrial structure and population structure. Besides, since the regional heterogeneity across China, the relationship between fiscal spending, and education quality may exhibit different patterns, we thus split our samples into eastern region and non-eastern region. Empirical results indicate that our main argument only exists in non-eastern area, which refers to the western area, where expanding fiscal expenditure would be more efficient for the government to raise provincial education quality. Meanwhile, fiscal policy would be less efficient to raise education quality for eastern area, thus new policy instrument is necessary.

Keywords: fiscal expenditure; education quality; China; regional heterogeneity analysis (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://brucol.be/index.php/ejme/article/view/7492 (text/html)
https://brucol.be/files/articles/ejme_v1_i3_18/Chen.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eur:ejmejr:27

DOI: 10.26417/ejme.v1i3.p44-52

Access Statistics for this article

More articles in European Journal of Marketing and Economics Articles from Revistia Research and Publishing
Bibliographic data for series maintained by Revistia Research and Publishing ().