Convergence and Disparities in Higher Education Fiscal Expenditures in China: A Regional Perspective

This research investigates the disparities and convergence in higher education fiscal expenditures across different regions in China. The study utilises Gini coefficient analysis and σ-convergence/β-convergence tests to quantify the extent of disparities and explore convergence trends over a twelve-year investigation period (2007–2018). The results shed light on the imbalances in resource allocation and provide valuable insights into the efforts required to achieve a more equitable distribution of fiscal resources for higher education. The findings reveal significant disparities in higher education fiscal expenditures between the Eastern, Central, Western, and Northeastern regions, with the Eastern region exhibiting the largest gap compared to others. Remarkably, the disparity between the Eastern and Central regions is even greater than that between the Eastern and Western regions, emphasising the need for targeted interventions to address regional imbalances. Over the study period, the gap between the Eastern and Central regions remained consistently higher than other regional disparities. Moreover, the research shows a general trend towards narrowing regional fiscal expenditure disparities, with the most pronounced convergence observed between the Central and Northeastern regions. The Western region exhibits slightly larger disparities than the Central and Northeastern regions, possibly attributed to greater fiscal policy support and lower student enrollments. Nevertheless, the fiscal expenditure gap between the Western and Central regions has shown a trend towards reduction. The study also explores absolute and conditional β-convergence, revealing notable convergence patterns in the Eastern and Central regions. However, the Western and Northeastern regions exhibit varying degrees of convergence, indicating the necessity for region-specific convergence mechanisms. To achieve a balanced allocation of financial resources for higher education across regions, the study recommends targeted fiscal policies, additional funding, and improved transparency and accountability. Policymakers should focus on enhancing convergence mechanisms to ensure a more equitable distribution of resources and foster the sustainable development of higher education throughout the country. While this research provides valuable insights, it is essential to consider other potential factors influencing fiscal expenditure disparities, such as policy orientation, economic disparities, and demographic structures, for a more comprehensive understanding. Future research may benefit from qualitative investigations to further explore the complexities of higher education fiscal expenditure imbalances and identify effective policy interventions.