The Effect Of Public Educational Expenditures On School Effectiveness

Based on the two-year panel data of China Education Panel Survey(CEPS),this thesis investigates the effect of fiscal education expenditure on school effectiveness from the analytical framework of Education Production Function(EPF).To extend the content of school effectiveness,this thesis not only examines the overall quality of teaching,but also incorporates equity as an important dimension of school effectiveness.In addition,in order to analyze the efficiency of education expenditures in different student groups in China's compulsory education and its heterogeneity in urban-rural schools,it also applies Sen index to the index of academic excellence and the index of lower-performers.In terms of analysis technology,two-way Fixed Effect estimation method based on panel data is used to eliminate the effect of some missing variables which are time-invariant or changing uniformly over time,so as to obtain the net effect of education expenditure on school effectiveness.The results are summarized as follows,First of all fiscal education investment has a significant "U" shaped effect on the overall quality of teaching,but it shows no significant effect on promoting the equity.Secondly,fiscal education expenditure has a significant "U" shaped effect on the index of academic excellence and its corresponding decomposition indexes,such as GINI coefficient among the excellent,rate of excellence.However,it has a heterogeneous effect on the school poverty index and its corresponding decomposition indexes.Thirdly,the effect of fiscal expenditure per capital on the effectiveness of urban and rural schools,as well as the index of academic excellence and the index of lower-performers is heterogeneous.The policy implication of this study is that more attention should be given to the poor students and schools in rural areas or marginal urban-rural fringe areas in the process of increasing investment in education resources to guarantee the quality and equality of teaching.The contribution of this research lies in the operationalization of the theoretical concept of school effectiveness into two significant dimensions:the quality and the equity of teaching,which are consistent with the expectation and demand of school education nowadays.The two index can also provide more ideas and inspiration for the current school education evaluation.