IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i20p5871-d279224.html
   My bibliography  Save this article

Financial Support and University Performance in Korean Universities: A Panel Data Approach

Author

Listed:
  • Young-Hwan Lee

    (Department of Social Welfare, Won-Kwang Health Science University, Iksan, Jeollabuk 54538, Korea)

  • Hyung-Kee Kim

    (Department of General Affairs, Korea National University of Welfare, Pyeongtaek, Gyeonggi 17738, Korea)

Abstract

This study analyzes the relationship between governmental financial support and university performance to determine whether the former enhances the latter or if universities enhance performance to attain government financial support. The types of financial support to universities considered in this study include those from central and local governments. University performance is defined in terms of the job-finding rates of students, number of publications in South Korean academic journals per full-time faculty member, and number of publications in SCI journals per full-time faculty member. This study uses financial support data of 148 universities from 2009 to 2017. To investigate the relationship between university financial support and performance, we use panel Granger causality testing and panel vector auto-regressive modeling. The results show that both central and local governmental financial support have an endogenous association with students’ job-finding rates. However, local governmental financial support and research performance show a reverse causality association.

Suggested Citation

  • Young-Hwan Lee & Hyung-Kee Kim, 2019. "Financial Support and University Performance in Korean Universities: A Panel Data Approach," Sustainability, MDPI, vol. 11(20), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5871-:d:279224
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/20/5871/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/20/5871/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Malcolm Abbott & Hristos Doucouliagos, 2004. "Research output of Australian universities," Education Economics, Taylor & Francis Journals, vol. 12(3), pages 251-265.
    2. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    3. Massimiliano Bratti & Abigail McKnight & Robin Naylor & Jeremy Smith, 2004. "Higher education outcomes, graduate employment and university performance indicators," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 167(3), pages 475-496, August.
    4. Belfield, C. R. & Fielding, A., 2001. "Measuring the relationship between resources and outcomes in higher education in the UK," Economics of Education Review, Elsevier, vol. 20(6), pages 589-602, December.
    5. Linda Butler, 2003. "Modifying publication practices in response to funding formulas," Research Evaluation, Oxford University Press, vol. 12(1), pages 39-46, April.
    6. Johnes, Jill & Johnes, Geraint, 1995. "Research funding and performance in U.K. University Departments of Economics: A frontier analysis," Economics of Education Review, Elsevier, vol. 14(3), pages 301-314, September.
    7. Porter, Stephen R. & Toutkoushian, Robert K., 2006. "Institutional research productivity and the connection to average student quality and overall reputation," Economics of Education Review, Elsevier, vol. 25(6), pages 605-617, December.
    8. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    9. Kiril Tochkov & Nikolay Nenovsky & Karin Tochkov, 2011. "University efficiency and public funding for higher education in Bulgaria," Post-Communist Economies, Taylor & Francis Journals, vol. 24(4), pages 517-534, November.
    10. Andrews, Donald W. K. & Lu, Biao, 2001. "Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models," Journal of Econometrics, Elsevier, vol. 101(1), pages 123-164, March.
    11. Matthew S. Kraatz & Edward J. Zajac, 2001. "How Organizational Resources Affect Strategic Change and Performance in Turbulent Environments: Theory and Evidence," Organization Science, INFORMS, vol. 12(5), pages 632-657, October.
    12. Hicks, Diana, 2012. "Performance-based university research funding systems," Research Policy, Elsevier, vol. 41(2), pages 251-261.
    13. Bolli, Thomas & Somogyi, Frank, 2011. "Do competitively acquired funds induce universities to increase productivity?," Research Policy, Elsevier, vol. 40(1), pages 136-147, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Min-Seung Kim & Jeong-Hee Lee & Yong-Ju Jang & Chan-Ho Lee & Ji-Hye Choi & Tae-Eung Sung, 2020. "Hybrid Deep Learning Algorithm with Open Innovation Perspective: A Prediction Model of Asthmatic Occurrence," Sustainability, MDPI, vol. 12(15), pages 1-21, July.
    2. Yoonseock Lee & Young-Hwan Lee, 2020. "University Start-Ups: The Relationship between Faculty Start-Ups and Student Start-Ups," Sustainability, MDPI, vol. 12(21), pages 1-22, October.
    3. Young-Hwan Lee & Kwon-Sik Kim & Kwang-Hoon Lee, 2020. "The Effect of Tuition Fee Constraints on Financial Management: Evidence from Korean Private Universities," Sustainability, MDPI, vol. 12(12), pages 1-19, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lips, Johannes, 2018. "Debt and the Oil Industry - Analysis on the Firm and Production Level," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181504, Verein für Socialpolitik / German Economic Association.
    2. Joan Costa-Font & Cristina Vilaplana-Prieto, 2023. "‘Investing’ in care for old age? An examination of long-term care expenditure dynamics and its spillovers," Empirical Economics, Springer, vol. 64(1), pages 1-30, January.
    3. Al-Jahwari, Salim Ahmed Said, 2021. "Does the Twin-Deficits doctrine apply to the Gulf Cooperation Council? A dynamic panel VAR-X model approach," MPRA Paper 111232, University Library of Munich, Germany.
    4. Nurliyana Mohd Basri & Zulkefly Abdul Karim & Noorasiah Sulaiman, 2020. "The Effects of Factors of Production Shocks on Labor Productivity: New Evidence Using Panel VAR Analysis," Sustainability, MDPI, vol. 12(20), pages 1-23, October.
    5. Charles Shaaba Saba & Nicholas Ngepah, 2022. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, October.
    6. Olufemi Adewale Aluko & Olufemi Patrick Adeyeye & Patrick Olajide Oladele, 2020. "Finance–growth nexus in sub-Saharan Africa revisited: evidence based on a new composite index," Economic Change and Restructuring, Springer, vol. 53(2), pages 333-355, May.
    7. Singh, Sunny Kumar & Bhattacharya, Kaushik, 2017. "Does easy availability of cash affect corruption? Evidence from a panel of countries," Economic Systems, Elsevier, vol. 41(2), pages 236-247.
    8. Young-Hwan Lee, 2021. "Determinants of research productivity in Korean Universities: the role of research funding," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1462-1486, October.
    9. Alfonso Mendoza-Velázquez & Luis Carlos Ortuño-Barba & Luis David Conde-Cortés, 2022. "Corporate governance and firm performance in hybrid model countries," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 21(1), pages 32-58, February.
    10. Lauren Stagnol, 2015. "Designing a corporate bond index on solvency criteria," EconomiX Working Papers 2015-39, University of Paris Nanterre, EconomiX.
    11. Hou, Xiaohui & Li, Shuo & Li, Wanli & Wang, Qing, 2018. "Bank diversification and liquidity creation: Panel Granger-causality evidence from China," Economic Modelling, Elsevier, vol. 71(C), pages 87-98.
    12. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    13. Tamazian, Artur & Bhaskara Rao, B., 2010. "Do economic, financial and institutional developments matter for environmental degradation? Evidence from transitional economies," Energy Economics, Elsevier, vol. 32(1), pages 137-145, January.
    14. Galariotis, Emilios C. & Makrichoriti, Panagiota & Spyrou, Spyros, 2016. "Sovereign CDS spread determinants and spill-over effects during financial crisis: A panel VAR approach," Journal of Financial Stability, Elsevier, vol. 26(C), pages 62-77.
    15. Ding, Guangyuan & Xiong, Yunbiao & Wang, Yashu, 2024. "Moderating effect of digital governance and eco-policy stringency in realizing natural resources-growth nexus: Role of financial development and FDI in G20 countries," Resources Policy, Elsevier, vol. 92(C).
    16. Ghannouchi, Imen, 2023. "Examining the dynamic nexus between industry 4.0 technologies and sustainable economy: New insights from empirical evidence using GMM estimator across 20 OECD nations," Technology in Society, Elsevier, vol. 75(C).
    17. Hynes, Kate & Kwan, Yum K. & Foley, Anthony, 2020. "Local linkages: The interdependence of foreign and domestic firms in Ireland," Economic Modelling, Elsevier, vol. 85(C), pages 139-153.
    18. Angela S. Bergantino & Claudia Capozza & Mauro Capurso, 2018. "Pricing strategies: who leads and who follows in the air and rail passenger markets in Italy," Applied Economics, Taylor & Francis Journals, vol. 50(46), pages 4937-4953, October.
    19. Boumparis, Periklis & Milas, Costas & Panagiotidis, Theodore, 2019. "Non-performing loans and sovereign credit ratings," International Review of Financial Analysis, Elsevier, vol. 64(C), pages 301-314.
    20. Chen, Yu-chin & Lee, Dongwon, 2018. "Market power, inflation targeting, and commodity currencies," Journal of International Money and Finance, Elsevier, vol. 88(C), pages 122-139.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5871-:d:279224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.