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Interaction between Higher Education Outputs and Industrial Structure Evolution: Evidence from Hubei Province, China

Author

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  • Dan He

    (Centre for Modern Chinese City Studies, East China Normal University, Shanghai 200241, China
    School of Urban and Regional Science, East China Normal University, Shanghai 200241, China)

  • Manxin Zheng

    (Centre for Modern Chinese City Studies, East China Normal University, Shanghai 200241, China
    School of Urban and Regional Science, East China Normal University, Shanghai 200241, China)

  • Wei Cheng

    (School of Urban and Regional Science, East China Normal University, Shanghai 200241, China)

  • Yui-yip Lau

    (Division of Business, Hong Kong Community College, The Hong Kong Polytechnic University, Hong Kong, China)

  • Qingmei Yin

    (School of Urban and Regional Science, East China Normal University, Shanghai 200241, China
    College of Architecture and Urban Planning, Tongji University, Shanghai 200092, China)

Abstract

In China, the government has made great achievements in mass higher education and intended to promote sustainable economic and social development. However, China still lacks innovation today and is trapped in its low-value-added industrial dilemma. Therefore, this paper aimed to understand how higher education outputs and industrial structure evolution affect each other by analysing evidence from Hubei, China, from 2004 to 2013. This paper quantified higher education outputs into graduate scale, education advancement, and innovation outputs and quantified industrial structure evolution into industrial structure upgrading and industrial structure rationalisation. Next, we applied the Granger causality test, vector auto-regression model, impulse response function, and variance decomposition to explore the causal relationships, response styles, and contribution rates between the indicators. The findings are as follows: (i) industrial structure upgrading and rationalisation are the Granger reasons for education advancement, and innovation outputs and graduate scale are the Granger reasons for industrial structure rationalisation; (ii) industrial structure upgrading and rationalisation can promote education advancement both quickly and significantly, however, education advancement, in turn, does not contribute to industrial structure evolution; (iii) though the contribution of innovation outputs to industrial structure rationalisation is hysteretic, it is greater than that of the graduate scale.

Suggested Citation

  • Dan He & Manxin Zheng & Wei Cheng & Yui-yip Lau & Qingmei Yin, 2019. "Interaction between Higher Education Outputs and Industrial Structure Evolution: Evidence from Hubei Province, China," Sustainability, MDPI, vol. 11(10), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2923-:d:233549
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    3. Yumin Shu & Zhongying Qi, 2020. "The Effect of Market-Oriented Government Fiscal Expenditure on the Evolution of Industrial Structure: Evidence from Shenzhen, China," Sustainability, MDPI, vol. 12(9), pages 1-17, May.
    4. Xiaoxue Liu & Fuzhen Cao & Shuangshuang Fan, 2022. "Does Human Capital Matter for China’s Green Growth?—Examination Based on Econometric Model and Machine Learning Methods," IJERPH, MDPI, vol. 19(18), pages 1-27, September.
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    7. Yui-Yip Lau & Cristina Dragomir & Yuk-Ming Tang & Adolf K. Y. Ng, 2021. "Maritime Undergraduate Students: Career Expectations and Choices," Sustainability, MDPI, vol. 13(8), pages 1-18, April.

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