Concept Of Private Education In China Investment In Private Education: Cost And Benefit Analysis

This thesis introduces the phenomenon of private education in China. Theoretical part takes into consideration historical development facts and legal regulations on running private schools in China. The practical part introduces the cost-benefit analysis which provides the opportunity for private individuals, policy planners and administrators to examine the correlation between potential costs and benefits while acquiring private education and makes otherwise often intuitive decisions about the resource allocation economically justified. The cost-benefit analysis allows forecasting on both individual and governmental levels. For individual investors it makes possible to predict future earnings differentiation, while on the governmental level it can provide important data about demand and supply as well as information about the possible under- or overinvestment in education. Thesis examines potential risks related with acquiring additional education at private institutions in China, introduces optimal investment model as well as illustrates potential prospects of private educational institutions in the PRC.