Public education expenditure and corporate human capital: Evidence from China

Abstract

The coordinated development of public education spending, human capital accumulation, and economic growth is a prerequisite for the virtuous cycle of regional economic development. The research results indicate that provincial-level public education expenditure has a positive impact on corporate human capital expenditure, and this impact is more pronounced in the western regions and non-state-owned enterprises. Based on this, the Chinese government should establish a long-term mechanism to ensure a certain level of public education investment in the future.