Financial Support and University Performance in Korean Universities: A Panel Data Approach

Young-Hwan Lee and Hyung-Kee Kim
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Young-Hwan Lee: Department of Social Welfare, Won-Kwang Health Science University, Iksan, Jeollabuk 54538, Korea
Hyung-Kee Kim: Department of General Affairs, Korea National University of Welfare, Pyeongtaek, Gyeonggi 17738, Korea

Sustainability, 2019, vol. 11, issue 20, 1-18

Abstract: This study analyzes the relationship between governmental financial support and university performance to determine whether the former enhances the latter or if universities enhance performance to attain government financial support. The types of financial support to universities considered in this study include those from central and local governments. University performance is defined in terms of the job-finding rates of students, number of publications in South Korean academic journals per full-time faculty member, and number of publications in SCI journals per full-time faculty member. This study uses financial support data of 148 universities from 2009 to 2017. To investigate the relationship between university financial support and performance, we use panel Granger causality testing and panel vector auto-regressive modeling. The results show that both central and local governmental financial support have an endogenous association with students’ job-finding rates. However, local governmental financial support and research performance show a reverse causality association.

Keywords: governmental financial support; university performance; panel granger causality test; PVAR model; endogeneity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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