Research On Innovation Of Colleges And Universities' Financing System In China

Colleges and universities'financing system refers to the formal and informal regulations which are related to colleges and universities'financing behavior. Colleges and universities'financing system guarantees of finance of a college or a university, which has an inseparable link to the functioning of the university as well as the development of the university. Perfecting this system can accelerate the efficiency of a university or a college, which contrarily will greatly counterwork the development of the university. This system has transformed from single funding system toward the system of multiple funding by responding to Chinese reforming and opening-up policy. Multiple financing system plays an important role in promoting the university development and achieving the transition of higher education from the elite to the mass. However, during the accelerating process of internationalization of higher education, domestic demands on higher education diversify. During the process of meeting these demands, the shortage of funds has increasingly became a bottleneck which restricts the development of the existing university funding system and the existing funding system is unable to meet the changing needs of higher education development. Therefore, to explore innovative funding system for Chinese colleges and universities is very important. This paper focusing on the theme of colleges and universities funding system innovation in China, explores the colleges and universities funding system, which bases on the analysis of the domestic and foreign research results and is structured by the analysis on institutional economics. This exploration contains the following aspects: the environment of colleges and universities'funding system, the arrangements for colleges and universities'funding system and the change of this system. On this basement, it responds to the practice of colleges and universities'funding system, learns from foreign experience in colleges and universities'funding system and promotes the innovative ideas of China's colleges and universities'financing system. â… . A Research Review and Evaluation of colleges and universities'financing systemThe foreign scholars study the issues related to colleges and universities'financing system earlier than the domestic scholars. After reform and opening up the domestic scholars started to pay attention to this issue gradually. Their research mainly focused on the following issues: the existence of colleges and universities'financing system, the roles of government and the market in colleges and universities'financing behavior, the structure of the system, the property rights transaction costs in this system and the funding channels. Scholars explored these issues from different angles and achieved fruitful results in this field, which laid a solid theoretical foundation for the innovation of this funding system. However, the research still has shortcomings, for example, still can not build the theoretical framework for the system, etc.â…¡. The research on the environment of colleges and universities'financing systemThe environment of colleges and universities'financing systemhas a fundamental impact on this system. The environment combines the formal and informal rules that stimulate and restrain the financing activities during the social development. Trichotomy of social structure believes that society contains three interlinked areas: economy, politics and culture. Therefore, the environment of the funding system comprises economic system, political system and cultural system. which play a distinctive and decisive role on the construction, operation, the efficency and the change of this system.â…¢. The research on the arrangements of colleges and universities'financing systemAn arrangement of the funding system defines different rights and obligations of the behavioral agents. The arrangement of the system should be efficient, fair, objective, coordinated, integrated and stable. The formation of this system is the process from non-equilibrium to equilibrium. The arrangement of colleges and universities'financing system is subject to supply and demands of this system.â…£. The research on the changes of colleges and universities'financing system. The changes of this system, which contains qualitative and quantitative forms, are the results of defending the vested interests and fighting for more benefits among all the relevant behavioral agents of the interests. From different points of view, the driving forces promote the changes are the demand vibration to the higher education because of the productivity growth evokes , the transform of the social basic system surroundings, the interests subjects'pursuit of the revenue maximization, the occurrence of emergency or happenchance and the reform of higher education system. The change of the funding system has different types. Path dependency occurred during the changing of this system influenced by the environment, the costs of this funding system, maximized beneficiaries who defend their vested interests, and historical and experience factors.â…¤. An empirical analysis of colleges and universities'financing system in ChinaAfter new china was founded, colleges and universities'financing system has gone through the historical evolution from a single financing system, the exploration of the multiple financing system, the development multiple financing system to the perfection of the multiple financing system. During this process it bears obvious path dependence. China's current financing system still has some problems which mainly focus on financing support system, tuition system, debt management system and other aspects of self-financing system.â…¥. The Implications of foreign colleges and universities'financing system.From a global perspective, different countries have different arrangements for colleges and universities'financing system due to different economic system, political system and cultural system. Both developed and developing countries , whether high welfare-oriented or not, attach great importance to ensuring the development of colleges and universities'financing system, improving its operational efficiency and achieving social justice and other aspects of the important role and they all actively explore the financing system compatible with national conditions. After years of development and reform, the United States, France, Japan and other developed countries and India as a representative of developing countries, have achieved some progress in the construction of colleges and universities'financing system. Stones from other hills may serve to polish jade. Therefore the profound study of foreign colleges and universities'financing system and the summary of their experience can provide very valuable inspiration for the innovation of China's colleges and universities'financing system.â…¦. Innovative Countermeasures of colleges and universities'financing system in ChinaCombines with the condition of China, according to the problems of funding system and their causes, learning from the foreign university funding system'successful experience, this paper from university settings system, financial support system, tuition system, debt management system, self-financing system and the colleges to universities'financing system environment, comes up with the innovative countermeasures to China's colleges and universities'financing system.