Abstract:

Based on the 282-prefecture-city panel data from 2007 through 2016, this paper tests the overall impact and spatial distribution effect of the policy statements related to the fiscal education investment on the efforts of local governments by using FE estimates. Empirical results show that the education expenditure as a proportion of public fiscal spending or GDP, the growth rate of education expenditure and education expenditure per student have increased significantly when the key word “4%” is clearly stated in government working paper. The growth of education expenditure in public fiscal spending and the sequential growth of education expenditure within the county are both significantly lower than those in urban areas. The growth of the proportion of education expenditure in GDP and education expenditure per student within county areas are considerably higher than those in municipal districts. This study responds to the long-term mechanism establishment of fiscal education expenditure in the post-4% era and the integrated development of urban and rural education.

Key words: statements of education policies, local government, effort of education investment, spatial distribution effect