Impact of Fiscal Education Expenditure on Urban-rural Consumption Gap
This paper explores the impact of fiscal education expenditure on urban-rural consumption gap.Using provincial panel data from China from 2005 to 2021,we employ a fixed effects model to analyze the relationship between fiscal education expenditur e and urban-rural consumption gap.The main findings of this paper are as follows:per capita fiscal education expenditure has a significant negative impact on urban-rural consumption gap,that is,the increase of fiscal education expenditure will narrow the urban-rural consumption gap.This result indicates that fiscal education expenditure has a crowding-in effect on urban-rural consumption gap.Fiscal education expenditure can effectively narrow the urban-rural consumption gap and improve the consumption level of rural residents,but this effect is not obvious in more developed regions,which may require more policy support and resource input.This paper puts forward some policy suggestions,including increasing the investment in rural education,guiding and satisfying the education demand of rural residents,improving the support and service for rural labor employment and entrepreneurship,etc.
fiscal education expenditureurban-rural consumption gapfixed effects model