The Rural Education Development And Economy Growth:Inherent Mechanism And Institution Innovation

The disharmony between Chinese rural education and rural economic growth playsa negative role in the economic development. Based on the theory of division of labor,how the rural education promotes rural economic development and system innovationare investigated in this dissertation in view of the inherent relation between the ruraleducation, division of labor and rural economy in order to provide theoretical andempirical support for the building of harmonious society and overall development ofurban and rural education.The conclusions in the dissertation are drawn as below:1.The education division is the important mechanism for education to promoteeconomic growth. Based on the theory of division of labor and Yang’s (2001) newclassical model for two products, some works are improved, one is to set the learningcost for every product, the learning cost depends on the education level of producer; theother is to set the professional economy degree in the model as the increasing functionof the education level for producer, the education level is higher, the work efficiency ofproducer and professional economization degree are higher, Thus, the new classicaleconomic model involved in education development, specialization and economydevelopment is set up and certified by the Chinese regional panel data. The conclusionsshow that the education plays an important and obvious promoting effect on division oflabor and specialization. One person whose education level is higher, his per capita realincome is also higher whatever under the self-sufficiency or division of laborenvironment. Education development really plays a significant role in promotingeconomic growth. The improved education level also plays a simulative effect on thedivision of labor and specialization, but some regions with low transaction efficiencyperhaps restrict the education function, the influence of education on economydevelopment in western regions should be smaller than in eastern regions.2. Chinese rural education development did not effectively push the rural economydevelopment. Education systems are reviewed historically from Qin, Han, Wei Jin,Southern, Northern, Sui, Tang Dynasties, Five Dynasties, Song, Liao, Jin, Yuan, Ming,Qing, Republic of China to the people’s Republic of China and the rural educationsystem characteristics are summed up. From the panel data during1992-2010, therelationship between rural education development and rural economy growth is certified and analyzed based on the agricultural labor productivity, farmer income growth andrural industrial development. The results show that the rural education development didnot play a positive role in agricultural labor productivity, the regression coefficient isnegative but not remarkable statistically; the education development did not play apositive effect on the income increase for farmers and the rural industrial development,either, the regression coefficient is still negative and not obvious statically, either. Thefunctions of rural education development were not developed fully yet and could noteffectively push the rural economy development. Chinese rural education shouldaccelerate the accumulation of rural human resources but actually exacerbated the lackof rural talents, instead.3.The reason why Chinese rural education function could not work effectively isthat the organization, operating and the financing system all ignore the division of labor,a potential variable.Reviewing the history, it is found that the rural education has beenalways ignored for long time, the number of rural education institutions is small, theinfrastructure is backward; the farmers get low level education, the illiteracy rate ishigher. People ignore scientific knowledge in rural education and pay more attention to“stereotyped writing”,“poems and couplets”, the rural education mainly is focused onexamination. Based on the current situation, there exist three problems of infrastructure,structure and function in view of the organization system. Firstly, the number of ruraleducation institutions is not enough and the rural education level is not good enough sothat the farmers can not meet the basic requirements of the division of labor; Secondly,the structure of rural education institutions is unreasonable and the rural occupationaleducation is ignored and lack of professional and technical training for rural workers,and can not meet the technical requirements of division of labor; Thirdly, the ruraleducation institutes can not realize its functions correctly, the open and professionalconsciousness are insufficient for workers, the worker’s innovation ability are relativelydeficient. At the operating system level, there is lack of motivation mechanism andincentive mechanism; the limit mechanism is unreasonable, which are disadvantageousto the education function of the division of labor and rural economic growth. From theviewpoint of financing, the overall investment for rural education is not enough; thefinancing system based on rural education system retards the education function ofdivision of labor and rural economic growth because of the finance and talent problemscaused by the high tuition fee for university. The below suggestions are put forward in the dissertation：1.Effective organization system should be set up to make rural education topromote rural economic growth in view of division of labor Firstly, the rural educationinfrastructure should be further strengthened, we should increase education investmentand improve basic education in rural areas, enhance the rural primary educationinstitutions and establish a scientific and rational rural primary and middle schools;Secondly, we should adjust the rural education structure, increase the proportion ofoccupation education and reasonably promote the reform for rural junior middle schooland occupation technical training school; Thirdly, we should change the orientedfunction of rural education institutions, promote rural the division of labor andspecialization oriented and deepen organizational innovation, develop rural professionaleducation and offering the farmers with required knowledge and skills on the differentlife stages, make more farmers enter into the team of the labor division andspecialization and become one part of industry chains, thereby the production efficiencyis improved accordingly; Strengthen the leading role of professional education andcultivating the farmer’s self-learning consciousness and ability; According to the allrequirements of the agricultural industry chain, we should strengthen the training forprofessional talents and cultivating the farmers’ professional consciousness, improve theprofessional degree of economy; cultivate the farmer’s innovation ability, deepen thelevel of division of labor and specialization, promote the product circuity productionand the chain extension of specialization, thus improve the efficiency of economicresources allocation.2. Effective operating system should be set up to make rural education to promoterural economic growth in view of division of labor We should hold the guidance systemof serving “agriculture-countryside-farmer”, market-oriented, competition, differenceand coordinated development and setup the incentive and restriction mechanism basedon the division of labor to make rural education to push rural economic growth.Thelaws of rural basic education and regulations should be strengthened and improved inorder to ensure that there must be laws to go by, the laws must be observed and strictlyenforced, and law-breakers must be prosecuted; Teachers and their work should berespected heavily in whole society and the discipline of education institutions should bealso strengthened. The government should support, encourage and guide the ruraloccupation educational institutions to strengthen their competitive and innovationconsciousness and establish the performance evaluation model based on graduates’ employment situations and strengthen management and supervision. The specializedcoordination department should be set up by the rural government departments and therural professional and social education service system should be built up by the ruralindustry organization, rural government departments, rural professional educationinstitutions and related research institutes, all kinds of related rights and responsibilitiesshould be confirmed and clarified and the dynamic mechanism, resource allocation,service and evaluation mechanism also should be established.The rural informationworks construction should be continued to completely solve the rural adult educationneeds.3. Effective financing system should be built up to push rural economy growthbased on the division of labor. In view of macroscopical system demands, it is necessaryto confirm annual total education investment and funding channels based on legislationand laws to ensure stable rural education fund to realize the stable increase of ruraleducation investment. The input and output system of rural education should be built upto make more social fund enter into education fields and absorb social and privatecapital to solve the lack of education capital demand and satisfy the social educationneeds at different levels. The rural compulsory education transfer payment should beundertaken by the multi-stage governments, the central government should provideincremental construction fund, provincial government should provide publicexpenditure, the county government should provide the rural school teacher salaryincrement of expenditure. The rural occupation education financing system should beestablished by multi-stage government and we should insist that the government plays amajor role in fiscal transfer and expand the occupation education budget proportion ofinvestment, optimize the financial investment structure, enhance the use efficiency,encourage private investment for the rural occupation education, support social groupsand individual investment for rural occupation education, establish the cost sharingmechanism for rural students and realize to grant rural college students’ tuition feeremission, increase the living allowance, and set up a special fund to encourage studentsto work or start their own business in rural areas.4. Strengthening the supporting policy for the development of rural education andproviding a good development environment. The central and local government shouldcoordinate and take full advantage of fiscal policy to promote the education. The centralgovernment should highly pay more attention to the rural basic, occupational and adulteducation investment. The local government should keep consistent with the central government and strengthen the local government’s function in financial supportingpolicy for the rural education development, continue to invest for nine years compulsoryeducation, strengthen the investment for the rural preschool education, pay moreattention to the investment for rural professional education and financial influence onthe education development, strengthen the role of credit policies and the innovation offinancial instruments varieties, strengthen rural infrastructure construction; reduce thetransaction cost of rural economy to benefit the realization of the function of educationdivision; implement the industrial development policy coordinated with the ruraleducation, implement the employment policy to realize the synchronous improvementfor the education development and transaction environment, promote division of laborand improve specialization level through the superimposed effect between educationand transaction condition.