College Expansion in China and Its Effect on Economic Outcomes

This study explores the determinants and consequences of higher education expansion in China from 1985 to 2012. We use the panel data of cities with detailed statistics on college construction. We find that college expansion is more likely to occur in larger cities with larger population, larger GDP per capita, and higher share of service industry. College construction is found to be unevenly spread across regions of China, with more colleges being built in Eastern Region and urban cores of prefectures. The primary results suggest the positive effect of college expansion on regional earnings and GDP per capita.Bachelor of Art