The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China
In recent years, China's rapid economic development has been accompanied by an increase in education spending, resulting in the accumulation of human capital. However, there is ongoing debate regarding whether and how education expenditures have fostered innovation in science and technology (S&...
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| Format: | Article |
| Language: | English |
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The Academic Research and Publishing UG (i. G.) (AR&P) LLC
2023-03-01
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| Series: | SocioEconomic Challenges |
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| Online Access: | https://armgpublishing.com/wp-content/uploads/2023/04/11_SEC_1_2023-3.pdf |
| _version_ | 1797701683512344576 |
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| author | Yang Yu Wang Xinxin Li Ruoxi Yin Tingting |
| author_facet | Yang Yu Wang Xinxin Li Ruoxi Yin Tingting |
| author_sort | Yang Yu |
| collection | DOAJ |
| description | In recent years, China's rapid economic development has been accompanied by an increase in education spending, resulting in the accumulation of human capital. However, there is ongoing debate regarding whether and how education expenditures have fostered innovation in science and technology (S&T). This study uses panel data from 31 Chinese provinces, cities, and autonomous regions from 2006 to 2015 to look at the relationship between education spending, human capital development, and S&T innovation. It seeks to shed light on this problem. Our results reveal that education expenditure has a significant positive impact on S&T innovation, and human capital accumulation plays a mediating role in this relationship. Specifically, an increase in education expenditure can not only enhance the innovation ability of the educated but also strengthen their ability to accept and apply new technologies, leading to the transformation and transmission of knowledge. Furthermore, our study shows that education expenditure has a greater impact on S&T innovation than capital formation. The findings of this study have important policy implications. Given that education expenditure is an effective means of promoting S&T innovation, it is recommended that the Chinese government continue to boost investment in education, enhance the convenience of education consumption, and advance education supply-side reform. Additionally, policymakers should consider the structure of education expenditures and how it affects innovation, as well as the different impacts of household and public expenditures, education consumption, and education investment on the economy. In conclusion, this study provides evidence supporting the important role of education expenditure in fostering S&T innovation in China. By investing in education, China can continue to build its human capital, promote economic development, and advance social progress. |
| first_indexed | 2024-03-12T04:40:14Z |
| format | Article |
| id | doaj.art-a3950a6d8d4f48288167a8a8642f797c |
| institution | Directory Open Access Journal |
| issn | 2520-6621 2520-6214 |
| language | English |
| last_indexed | 2024-03-12T04:40:14Z |
| publishDate | 2023-03-01 |
| publisher | The Academic Research and Publishing UG (i. G.) (AR&P) LLC |
| record_format | Article |
| series | SocioEconomic Challenges |
| spelling | doaj.art-a3950a6d8d4f48288167a8a8642f797c2023-09-03T09:45:57ZengThe Academic Research and Publishing UG (i. G.) (AR&P) LLCSocioEconomic Challenges2520-66212520-62142023-03-017112913810.21272/sec.7(1).129-138.2023The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from ChinaYang Yu0https://orcid.org/0000-0002-7495-4857Wang Xinxin1https://orcid.org/0009-0002-1955-8015Li Ruoxi2https://orcid.org/0009-0006-1597-7502Yin Tingting3https://orcid.org/0009-0006-2605-6637PhD Student, Associate Professor, Academic and Research Institute for Business, Economics, and Management, Sumy State University, Ukraine; Jiamusi University, ChinaPhD Student, Academic and Research Institute for Business, Economics, and Management, Sumy State University, Ukraine; Jiamusi University, ChinaPhD Student, Academic and Research Institute for Business, Economics, and Management, Sumy State University, Ukraine; Jiamusi University, ChinaPhD Student, Academic and Research Institute for Business, Economics, and Management, Sumy State University, Ukraine; Jiamusi University, ChinaIn recent years, China's rapid economic development has been accompanied by an increase in education spending, resulting in the accumulation of human capital. However, there is ongoing debate regarding whether and how education expenditures have fostered innovation in science and technology (S&T). This study uses panel data from 31 Chinese provinces, cities, and autonomous regions from 2006 to 2015 to look at the relationship between education spending, human capital development, and S&T innovation. It seeks to shed light on this problem. Our results reveal that education expenditure has a significant positive impact on S&T innovation, and human capital accumulation plays a mediating role in this relationship. Specifically, an increase in education expenditure can not only enhance the innovation ability of the educated but also strengthen their ability to accept and apply new technologies, leading to the transformation and transmission of knowledge. Furthermore, our study shows that education expenditure has a greater impact on S&T innovation than capital formation. The findings of this study have important policy implications. Given that education expenditure is an effective means of promoting S&T innovation, it is recommended that the Chinese government continue to boost investment in education, enhance the convenience of education consumption, and advance education supply-side reform. Additionally, policymakers should consider the structure of education expenditures and how it affects innovation, as well as the different impacts of household and public expenditures, education consumption, and education investment on the economy. In conclusion, this study provides evidence supporting the important role of education expenditure in fostering S&T innovation in China. By investing in education, China can continue to build its human capital, promote economic development, and advance social progress.https://armgpublishing.com/wp-content/uploads/2023/04/11_SEC_1_2023-3.pdfscience and technology innovationhuman capital accumulationmediating effect |
| spellingShingle | Yang Yu Wang Xinxin Li Ruoxi Yin Tingting The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China SocioEconomic Challenges science and technology innovation human capital accumulation mediating effect |
| title | The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China |
| title_full | The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China |
| title_fullStr | The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China |
| title_full_unstemmed | The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China |
| title_short | The Mediating Role of Human Capital in the Relationship between Education Expenditure and Science and Technology Innovation: Evidence from China |
| title_sort | mediating role of human capital in the relationship between education expenditure and science and technology innovation evidence from china |
| topic | science and technology innovation human capital accumulation mediating effect |
| url | https://armgpublishing.com/wp-content/uploads/2023/04/11_SEC_1_2023-3.pdf |
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