Theoretical Analysis, The Scale Of Government Investment In Education Decision

Today,with the rapid development of socially productive forces and science and technology, education is increasingly becoming very important. However,developing education requires fund in which financial allocation is the main share. This paper analyses the decision on Government Education Investment Scale (& GEIS) at three aspects (demand, supply, system), and makes some suggestions in policy. This paper is divided into six parts.The first part is an introduction and summary. The introduction analyses the implication, character and motive of Government Education Mvestment (&GEI). The summary is past theories about GEI.The Second part discusses the affect of educational demand to the decision on GEIS. The single-factor theory researches the relation between population &GEIS, economic development &GEIS, science and technology &GEIS, social fair &GEIS, educational efficiency &GEIS, unemployment &GEIS. When per educational cost keeps constant, the demanded quantity and growth rate of education investment are in direct proportion to the population and the level of economic development, and inverse ratio to the degree of social fair and educational efficiency; Science and technology has advanced educational reform and raised per educational cost, so GEIS has expanded; at last, GEI may help reduce unemployment rate. However, GEIS is co-decided by above-mentioned factors in the multifactor theory.The third part analyzes the affect of educational supply to GEIS. This part analyzes material base of educational development, summaries and verifies the supply function about GEI in three-department economy, explains the law that the proportion of GEI in the national income and the gross national product tends to be stable, and researches the best scale of GEI by the theory of public product.The fourth part researches the effect of several systemal factors to GEIS. These factors consist of economic system, allocational system, traditions and ideas, and so on.(l)Government is basically the only subject of investment into education in the planned economic system; however, government investment, social strength investment, joint investment of government and social strength, foreign investment, joint investment of foreigner and Chinese, have come into the plural construction of investment subject in the market economy.(2)Different system of appropriation can also influence GEIS. Since 1980s, with the increasing expansion of educational scale, the finance tends to straitened circumstances, so a reform of allocation system has to be carried out in order to make up the short of fund in education and improve the efficiency of applying educational resources. At last, GEIS may also be affected by traditions and ideas.The fifth part is proposals on educationally investmental policy which are fit for thecircumstances of our country at the moment. On the one hand, comparing with the limited supply capacity of higher education, people's demand for higher education is excessive, so the total demand for higher education must be cut down by a regulation on construction; on the other hand, the education fund is short, but there is simultaneously inefficient, so we have to advance hardly the efficiency of using fund, to increase educational supply as possible.The last part is the conclusion. It reveals the future of research on the problem and our confidence of resolving it.