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Education Resource Reallocation and Innovation: Evidence from University Mergers in China

32 Pages Posted: 14 Sep 2022 Publication Status: Published

See all articles by Libin Han

Libin Han

Dongbei University of Finance and Economics

Hongwei Xu

Dongbei University of Finance and Economics

Yuejun Zhong

East China Normal University

Abstract

Based on the university mergers policy in China that began in the 1990s, this paper uses a DID regression model to study the impact of higher education resource reallocation on university R&D. It reveals that the university mergers have significantly increased the output of R&D, and the conclusion is consistent in a series of robustness tests. The mechanism analysis results show that the university mergers can affect the R&D by increasing the scientific research funding input in universities, improving the discipline development, and increasing the ability of basic R&D. Heterogeneity test results show that the complementary mergers have a greater impact on R&D in universities. These findings reveal an important mechanism that is conducive to deepening the reform of higher education and catching up with the first-class universities and disciplines.

Keywords: university mergers, innovation, education resource reallocation

Suggested Citation

Han, Libin and Xu, Hongwei and Zhong, Yuejun, Education Resource Reallocation and Innovation: Evidence from University Mergers in China. Available at SSRN: https://ssrn.com/abstract=4219179 or http://dx.doi.org/10.2139/ssrn.4219179

Libin Han

Dongbei University of Finance and Economics ( email )

China

Hongwei Xu (Contact Author)

Dongbei University of Finance and Economics ( email )

Yuejun Zhong

East China Normal University ( email )

No.3663 Zhongshan Road
Shanghai, Shanghai 200062
China

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