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Purpose

This study investigates the impact of educational tourism (EDT) on economic growth in China, focusing on the moderating role of the educational environment (EE).

Design/methodology/approach

Annual time series data from 1985 to 2022 are analysed using Johansen-Juselius cointegration tests to examine long-run relationships. The entropy method is used to construct a composite index of the EE covering five dimensions: student density, infrastructure, funding, research quality, and teaching quality.

Findings

The results confirm a long-run cointegration relationship among EDT, the EE, and economic growth. Furthermore, the EE significantly enhances the positive effect of EDT on economic growth. Specifically, student density, infrastructure, and research quality have strong moderating effects on the relationship; funding and teaching quality exhibit no significant influence.

Practical implications

Policy efforts should avoid viewing the EE as a unified construct and instead focus on the components where it is most effective. These include strengthening research quality, expanding access to higher education, and improving campus infrastructure. Shifting from general increases in education funding to targeted, student-centred financial support may make the EE more attractive.

Originality/value

This study makes a significant contribution to the literature by developing a multidimensional index for the EE in China. The empirical results show that the EE moderates the relationship between EDT and economic growth. These findings also offer fresh insights into how EDT contributes to economic growth in the Chinese context.

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