Status Of Higher Education Supply And Demand In China And Its Economic Analysis

Higher education is the critical aspect for a country, because it concerns with talent education and hi-tech research. In China, people have positive attitude towards education and there is a blooming demand for higher education. The country is in a dilemma that the limited supply cannot meet the increasing demand. To solve the problem, the government has asked universities to enlarge the enrollment quantity since 1999, so more students get the study opportunity. But there are also negative aspects of this governmental activity, such as the decrease of education quality and recruiting rate for graduates. What the government has done is a temporary solution. To solve the problem completely, we must study the reason of demand-supply dilemma first, then we can find the effective solution.As a kind of service, the demand and supply of higher education must conform to the rules of market economy, so the first step before we start the research is identify the attribute of higher education. In the thesis, we consider higher education quasi-public goods and the following research base on this identification. We establish a model of demand and supply to help us analyze the market and we have quoted lots of data to support our analysis. After a deep analysis, we got the conclusion: there are three critical problems of higher education market; they are imbalance of the demand-supply in total and structure, imperfection of market mechanism. All the three problems can ascribe to the lost of market mechanism.To solve the problem, the thesis gives the suggestion: after an effective analysis of market boundary, we should rebuild the new market mechanism in the reasonable field. The new mechanism should contains effective decision system, dynamic system and adjust system. An effective market mechanism is the key point to solve the problem of China higher education market.