IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v57y2023ics1544612323005640.html
   My bibliography  Save this article

Impact of fiscal education expenditure on innovation of local listed enterprises: Evidence from China

Author

Listed:
  • Tan, Qijia
  • Li, Cuilan
  • Qin, Zhaohui
  • Yu, Siming
  • Pan, Yuchen
  • Andrianarimanana, Mihasina Harinaivo

Abstract

Developing countries are generally confronted with the issue of insufficient investment in education. However, with the rapid development of the economy of China and the continuous increase of the innovation capability of enterprises, fiscal investment in education is expected to be among the main factor contributing to the innovation of enterprises. Based on the panel data of 31 provinces and listed companies in China from 2005 to 2021, this study used a fixed effect model to analyze the influence and mechanism of fiscal education expenditure on enterprise innovation. The results confirmed that fiscal expenditure on education promotes enterprise innovation. Further analysis showed that there is regional heterogeneity in the impact of fiscal education expenditure on enterprise innovation. For instance, the magnitude of the effect of fiscal education expenditure on enterprise innovation was found higher in the Eastern region compared to the Western region. These findings deepen our understanding of the impact of fiscal education expenditure on enterprise innovation. Furthermore, it provides references to developing countries on the importance of fiscal education expenditure in optimizing the innovation of enterprises.

Suggested Citation

  • Tan, Qijia & Li, Cuilan & Qin, Zhaohui & Yu, Siming & Pan, Yuchen & Andrianarimanana, Mihasina Harinaivo, 2023. "Impact of fiscal education expenditure on innovation of local listed enterprises: Evidence from China," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005640
    DOI: 10.1016/j.frl.2023.104192
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612323005640
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2023.104192?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. G. Agiomirgianakis & D. Asteriou & V. Monastiriotis, 2002. "Human capital and economic growth revisited: A dynamic panel data study," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 8(3), pages 177-187, August.
    2. Godfred Anakpo & Adeola Oyenubi, 2022. "Technological innovation and economic growth in Southern Africa: Application of panel dynamic OLS regression," Development Southern Africa, Taylor & Francis Journals, vol. 39(4), pages 543-557, July.
    3. Simona Andreea Apostu & Lindita Mukli & Mirela Panait & Iza Gigauri & Eglantina Hysa, 2022. "Economic Growth through the Lenses of Education, Entrepreneurship, and Innovation," Administrative Sciences, MDPI, vol. 12(3), pages 1-14, June.
    4. Hu, Huiting & Yu, Gangning & Xiong, Xueli & Guo, Lijia & Huang, Jiashun, 2022. "Cultural Diversity and Innovation: An Empirical Study from Dialect," Technology in Society, Elsevier, vol. 69(C).
    5. Erstu Tarko Kassa & Tilahun Getnet Mirete, 2022. "Exploring factors that determine the innovation of micro and small enterprises: the role of entrepreneurial attitude towards innovation in Woldia, Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-16, December.
    6. Qi Wang & Ling-Na Zhang & Qi Lian & Daqing Gong, 2022. "Innovation Facilitated by Universities: Balancing Enterprise and Regional Demands," Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-16, March.
    7. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-563, July.
    8. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
    9. Thomas J. Chemmanur & Elena Loutskina & Xuan Tian, 2014. "Corporate Venture Capital, Value Creation, and Innovation," Review of Financial Studies, Society for Financial Studies, vol. 27(8), pages 2434-2473.
    10. Orozco, Luis Antonio & Sanabria, John Alirio & Sosa, Juan Camilo & Aristizabal, Jeimy & López, Liliana, 2022. "How do IT investments interact with other resources to improve innovation?," Journal of Business Research, Elsevier, vol. 144(C), pages 358-365.
    11. Pegkas, Panagiotis & Staikouras, Christos & Tsamadias, Constantinos, 2019. "Does research and development expenditure impact innovation? Evidence from the European Union countries," Journal of Policy Modeling, Elsevier, vol. 41(5), pages 1005-1025.
    12. Hrishikesh D. Vinod & Surendra K. Kaushik, 2007. "Human Capital and Economic Growth: Evidence from Developing Countries," The American Economist, Sage Publications, vol. 51(1), pages 29-39, March.
    13. Sylwester, Kevin, 2000. "Income inequality, education expenditures, and growth," Journal of Development Economics, Elsevier, vol. 63(2), pages 379-398, December.
    14. Agasisti, Tommaso & Bertoletti, Alice, 2022. "Higher education and economic growth: A longitudinal study of European regions 2000–2017," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    15. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    2. Teresa SEQUEIRA & Francisco DINIZ, 2014. "Planning Beyond Infrastructures: The Third Sector In Douro And Alto Tras-Os-Montes," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 43-57, June.
    3. Claude Diebolt & Magali Jaoul-Grammare & Faustine Perrin, 2022. "A Cliometric Reading of the Development of Primary Education in France in the Nineteenth Century," Working Papers 02-22, Association Française de Cliométrie (AFC).
    4. Churchill, Sefa Awawoyi & Yew, Siew Ling & Ugur, Mehmet, 2015. "Effects of government education and health expenditures on economic growth: a meta-analysis," Greenwich Papers in Political Economy 14072, University of Greenwich, Greenwich Political Economy Research Centre.
    5. Papageorgiou, Chris & Razak, Nor Azam Abdul, 2009. "Inequality, Human Capital and Development: Making the Theory Face the Facts," MPRA Paper 18973, University Library of Munich, Germany.
    6. Nauro F. Campos & Abrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 793-836, September.
    7. Hwang, Jinyoung, 2005. "Asset distribution and tertiary education expenditure in developing countries," Economics of Education Review, Elsevier, vol. 24(2), pages 171-178, April.
    8. Mazhar Mughal, 2010. "Explaining income inequalities in the developing countries- the role of human capital," Post-Print hal-01881841, HAL.
    9. Konstantinos Angelopoulos & Jim Malley & Apostolis Philippopoulos, 2007. "Public Education Expenditure, Growth and Welfare," CESifo Working Paper Series 2037, CESifo.
    10. Humaira Kamal Pasha, 2021. "Education Attainment and Economic Growth of Asian Developing Countries," Working Papers hal-03230025, HAL.
    11. Artige, Lionel & Cavenaile, Laurent, 2023. "Public education expenditures, growth and income inequality," Journal of Economic Theory, Elsevier, vol. 209(C).
    12. repec:zbw:rwidps:0030 is not listed on IDEAS
    13. Günther Rehme, 2007. "Education, Economic Growth and Measured Income Inequality," Economica, London School of Economics and Political Science, vol. 74(295), pages 493-514, August.
    14. Ahmet Faruk AYSAN & Mustapha Kamel NABLI & Marie‐Ange VÉGANZONÈS‐VAROUDAKIS, 2007. "Governance Institutions And Private Investment: An Application To The Middle East And North Africa," The Developing Economies, Institute of Developing Economies, vol. 45(3), pages 339-377, September.
    15. Olusanya, Oluwakorede, 2016. "Causality between Human Resource Development and the Nigerian Economic Performance," MPRA Paper 100854, University Library of Munich, Germany.
    16. ?gel de la Fuente, "undated". "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    17. Ricardo Fort, 2007. "Land inequality and economic growth: a dynamic panel data approach," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 159-165, September.
    18. Oleg Badunenko & Daniel Henderson & Romain Houssa, 2014. "Significant drivers of growth in Africa," Journal of Productivity Analysis, Springer, vol. 42(3), pages 339-354, December.
    19. Matthew Higgins & Daniel Levy & Andrew T. Young, 2003. "Growth and Convergence across the US: Evidence from County-Level Data," Working Papers 2003-03, Bar-Ilan University, Department of Economics.
    20. Rogers, Mark Llewellyn, 2008. "Directly unproductive schooling: How country characteristics affect the impact of schooling on growth," European Economic Review, Elsevier, vol. 52(2), pages 356-385, February.
    21. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323005640. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.