Investment In Education And Government Regulation

At the age of Anowledge- economy education invesAned becomes an imPoftatfield in Which govennnen, oterprise (or other non-govemmen organization) and' individual can invest, fOr the reason that education goods belongs to a tyPical qusi-public goods, Which can bring inVsestor benefits not only to the society and others but. also to himseir Thus, gtivernment has an twortan status in this field: Firstly,u govemmtal is the most importam invsestOr in the fleld of education inVesAned. Atthe stage of fimdamenal (or comPulsory) education, govrments in the woridnowadays take on all or most pat of the cost of education because of the promintalsocia1 benefit Which is one of the imPortat foundations to the Anprovernent ofnational qualities. At the stage of non- compu1sory education, such as secondary orhigh education, govemmen still needs take on pat of the cost of education becausethe education has an extensive social benefit in addition to the Prominen Privatebenefit. Secondly, governmot is the actor Who regUlates both non-govemmeneducation invesAned and individual education investrient----tution. For theindividual investried, govenunCllt can influence the amoat and smicfore ofindividual education-invesAned directly by Prescribing the proportion of taking onthe cost of education----the level of tuition. In addition, governmde can influenceindividual education-investIned indirectly by other fiscal policy such as educationcredit, education savings. For the folk education-investInent, govennned can reguateit by Tuition Tax Credits, Educationa1 Vouchers etc.From the views of the amoun of education investinent: LongitUdinally, theamotal of education-invesAned of our coUnny increases raPidly after the foundationof our coUnty especially after the Reforming and Opening. Whereas, horizontally,comParing to deve1oped countries, developing codries and the average level ofilltemational cotmtries, the proportion of public education exPendituIC to GDP isre1ative much lower than that of the 1atter But the proportion of public educationexPendithe to the total public exPendithe has amoamed tO the average level ofilltemdtional countries. From above, we suggest that the fundamedal way ollt thatincreases the public education exPenditUIC is that twroves the proportion of financial- revenue to GDP, instead of only dePendng on twroving the proportion of education'expenditufe to tOtal financial revenue. Non-govennnwt education exPendtUre shouldbe encouraged to ener the field of education invesAnen. Besides, schools especially- secondary or high school should boer face market to imProve its revenue by takingadvamage of its own science and teforlogyFrom the view of the smiCfore of education invesfored of our country at present:In the constitutions of education exPenditUre, financial education, especia1lybudgetny education invesAned, is in a domnan position, though, with the reformingof charge system of high school these days, undertaking edrings are keePing uPward,the share of folk-education expenditore is still much less. From the strUctue of usingof education expendfore, the distriCt StrUtwe is that education expendiforeconcentrates in developed provinces or ones in which there are cultural or historicalcihes. Meanwhile, other provinces own little. From the nd strUctUre of school,comPared with average level of the worid, high and secondny school education havemuch more share than that of Primary school education. Consequenly, we suggestthat folk education invemed shou1d be further encouraged, 1essen the imbalance ofdistrict StnJctUre of education by transfer paymen of fiscal policy, and -ve thepub1ic education invesforen tO fimdamotal school education, and so on.From the view of institution: Influenced by the long time plannd economyregime, the regUlatory reghe of education in our coulltry has many flaws. Using the -theory of Principal aged aPproach of institUtion economics, we analyze the cause of...