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A study on county high school collapse, urbanization development, and local government fiscal capacity

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  • Wang, Dong
  • Dong, Jia
  • Wang, Guoming

Abstract

This study uses 2011–2019 provincial panel data to examine the nonlinear impact of urbanization and local government fiscal capacity on county high school collapse in China. The collapse index, derived via the entropy weight method, reveals a threshold effect of urbanization. Below the threshold, urbanization worsens high school resource loss in rural counties; above it, intensified urbanization, particularly county-centered development, decelerates the decline by reducing urban–rural resource gaps. Improved local government fiscal capacity also significantly worsened the extent of “county high school collapse.” Policy implications should prioritize county-level public-service capacity and equitable resource allocation to strengthen education.

Suggested Citation

  • Wang, Dong & Dong, Jia & Wang, Guoming, 2025. "A study on county high school collapse, urbanization development, and local government fiscal capacity," Finance Research Letters, Elsevier, vol. 85(PE).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pe:s1544612325015934
    DOI: 10.1016/j.frl.2025.108339
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    References listed on IDEAS

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    1. Muzhe Pan & Yaofu Huang & Yawen Qin & Xun Li & Wei Lang, 2022. "Problems and Strategies of Allocating Public Service Resources in Rural Areas in the Context of County Urbanization," IJERPH, MDPI, vol. 19(21), pages 1-20, November.
    2. Fangyu Ju & Shuqing Wang & Wei Lin & Adnan Maqsood, 2022. "Nonlinear Effect of Urbanization on the Gap between Urban and Rural Elementary Education in China," Mathematical Problems in Engineering, Hindawi, vol. 2022, pages 1-10, October.
    3. Knight, John & Li, Shi, 1996. "Educational Attainment and the Rural--Urban Divide in China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 83-117, February.
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