Funding diversification, governance autonomy, and higher education resilience

Abstract

This paper examines whether funding diversification enhances higher education resilience under fiscal uncertainty. Using panel data on universities from 2010 to 2023, we construct a composite resilience index capturing institutional stability, adaptive capacity, and recovery performance. We find that greater revenue diversification is significantly associated with higher education resilience. Mechanism analysis further indicates that governance autonomy partially mediates this relationship. Heterogeneity tests reveal stronger effects in non-core regions, non–first-tier cities, application-oriented universities, and centrally affiliated institutions. The results highlight the role of revenue structure and governance flexibility in strengthening institutional sustainability in higher education.