Investment Management & Financial Innovations (Feb 2022)

Analysis of regional differences in government funding performance in higher education – A case study of China

  • Yanjun Fu,
  • Mykhaylo Heyenko

DOI
https://doi.org/10.21511/imfi.19(1).2022.08
Journal volume & issue
Vol. 19, no. 1
pp. 106 – 120

Abstract

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In recent years, although the total funding for higher education by the Chinese government has been increasing year by year, there are still some problems, such as the unreasonable allocation of regional resources and poor funding efficiency. Therefore, it is necessary to evaluate the performance management and analyze government funding in higher education (GFHE). Based on the data envelopment analysis (DEA) model, this paper evaluates the performance of GFHE in 29 provinces in eastern, central, and western areas of China. An empirical analysis is conducted on the influencing factors using the panel Tobit regression model. The results show that from 2008 to 2020, GFHE performance in China is generally high, but offers a “W-shaped” fluctuation rising state. There are significant differences in the performance of different areas, and the scale level of GFHE in the three areas is not wholly consistent with the performance level. In further studies, the performance level of the 29 provinces is divided into three degrees, which are distributed in all three areas. The study also found that the influencing factors of GFHE performance in central, eastern, and western China are also different, and analyzed the positive and negative effects of influencing factors in each area. Finally, the study tests the theoretical hypothesis, and the results are robust.

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