Researching the Influence of Rural University Campuses on Rural Economic Development: Evidence from Chinese Counties between 2001 and 2020

Abstract

While there have been studies on the relationship between higher education institutions and regional economic growth, few have delved into the economic impact of decentralized higher education institutions at the county level and associated reginal disparities in terms of socio-economic development. Utilizing the data of the Chinese universities that started to establish their campuses in counties since the year 1999, this study investigates the influence of rural university campuses on county-level GDP and industrial composition spanning from 2001 to 2020. It also delves into the temporal dynamics and regional discrepancies associated with this impact. The findings of this study show that (a) rural university campuses wield a notable positive influence on the GDP of their respective counties, particularly shaping the structure and ratio of secondary and tertiary industries; (b) the magnitude of this effect is contingent upon the duration of campus establishment and growth, intensifying over time; (c) variations in this impact are evident across the eastern, central, and western regions of China, where there are vast socio-economic differences. This study underscores the significant spillover effect of higher education decentralization on county-level economies and advocates for the pivotal role of rural university campuses in propelling county-level economic progress. Additionally, it proposes coordinated policy support from national, regional, and rural university campus authorities; the establishment of requisite support structures; and the comprehensive consideration of regional nuances.