Cost-sharing Under The Influence Of The Size Of The Financial Investment In Higher Education

In our country, the development of the economy and society is faced with taking further steps to deepen the reform and accelerating economic restructuring, but the current higher education system still fall far short of the corresponding demand for the talent. Therefore, the expansion of higher education system, as a major source of cultivating talents, is an inevitable trend. Since the higher education cost-sharing policy was carried out in our country, in parallel to the continuous growth in the higher education scale, the sources of funds for higher education is diversifying. Government, individuals, families and the community are contributing to the development of higher education. On the other hand, facing rising tuition fees, the relative lack of financial education investment has been a lot of questions. Although the introduction of cost-sharing, should dominance of the government investment in higher education be changed? How do the various sources of funds influence the scale of higher education? These questions should be faced and explored in the expansion of higher education. Meanwhile, these are the key to promote the optimal expansion of higher education scale.In the background of cost-sharing, research on the association and mechanism between various sources of funds, and analysis on the influence of financial system on the current input pattern of the higher education scale play an important guiding role to expand the scale of higher education, clear the affecting degree of the different funds sources, and set reasonable sharing ratio.This paper not only developed and deepened research field rewarding the scale of higher education, but expanded the research for the funds sources of higher education. When exploring the effects of financial investment on the scale of higher education, the analysis method of the institutionalism is used to study the effects of financial investment on the supply of higher education, which is combined with the demand for higher education to establish simultaneous equations model.Previous research only focuses on unilateral analysis of supply and demand of higher education. In this study,we try to break through the limitation. Simultaneously, by empirical analysis, this paper provides experimental evidence that the government should still dominate in the funding of higher education.Based on a large number of domestic and international research literature about the expansion of higher education scale, we trace back prior research. This paper explores the mechanism between the fiscal investment and the higher education scale which is based on the cost sharing theory, the supply-and-demand theory of the higher education scale and so on. Meanwhile, it elaborates the changes of financial system of higher education in China since the reform and opening and the status quo. Based on this, this paper selects all provinces, municipalities and autonomous regions from2002to2009as sample, and "Statistical Yearbook of China","Educational statistics yearbook of China" and so on as date source, and structure a simultaneous equations model. In this model, the scale of higher education is explained variable, and tuition fees and fiscal investment are explanatory variable.Meanwhile, other variables,such as average income of urban and rural residents, average wage, unemployment rate, wage differential, proportion between teachers and students, other revenue and so on are control quantity. At last, on the one hand, from the results of empirical test,we draw the conclusions of this paper. On the other hand, corresponding suggestions to expand the scale of higher education are put forward, which provide research support for accurate position of the government’s role in the development of higher education.The textual main conclusion is that the fiscal investment elasticity of the higher education scale appears to be about0.392.We can see that the financial investment has a major impact on the scale expansion of higher education and play an important role. Although the tuition has remarkable effect, it’s not suitable for expanding the scale of higher education by increasing tuition based on our country reality. Meanwhile, it should also continue to perfect the system of student financial assistance, as well as the preferential tax policy of individual and family. The empirical results indicate that the power of fork force is still weak, and there is great space to promote for the potential of not-government organization running schools. Fork force should be put into full play, and make a contribution to expanding the scale of higher education.