Education Investment System

The development of higher education is one of the most important driving forces to the economic development. Countries all over the world are accelerating the development of higher education. While there exist a variety of problems in the development of higher education, which not only hinder the education development itself but also the fast and sustainable development of the whole national economy. The problems that Chinese higher education are faced with include: the contradiction between the idleness of social capital and the shortfall of higher education funds; the contradiction between the strong demand of human capital by the economic growth and unemployment of college graduates; the shortage of higher education funds and the waste of higher education resources, etc. The contradiction between those shortfalls and oversupplies has been harassing the development of Chinese higher education, and gone worse with the expansion of the higher education. It is a reflection of inner defect of the system, which shows that the unilateral government investment system couldn't eliminate the dilemma at all during the development of the Chinese higher education. Therefore the fundamental solution to the Chinese higher education is system innovation, i.e. to establish the multilateral higher education investment system.Based on economic benefit theory, this paper has done some researches and made an in-depth analysis about China's higher education investment system from three aspects. 1. Analyzing the rationality of multilateral higher education investment entity in terms of the property of combined products of higher education production. 2. Analyzing the effects of higher education multilateral investment in terms of benefit motivation and stimulation mechanism, and putting forward the proposition that higher education efficiency could be improved by the multilateral higher education investment system. 3. Using international comparison of the higher education investment systems to give the paper a practical analysis.The study of this paper shows that: 1. the combined products property of higher education products necessitates the establishment of multilateral higher education investment system by the government, individual, private sectors, educational organizations, which will overcome the failure of market, government, the externality...