Research On Regulation Of Higher Education Market In China

Higher education is playing more important role in economic development. In the last two or three decades, marketisation is the main trend of educational reform in the world. The reform is deeply rooted theoretically in Competition and Club Theories. So it is the inherent need of higher education other than temporary countermeasure to the financial crisis facing to nations.Then, question here is whether the government should be involved in higher education or it should be left to other social institutes namely markets? In order to solve the question, three market failures are considered: externalities from quasi-public goods, equality of education opportunity and asymmetric information. The research makes clear two benign misunderstandings on the part of people and proves that: (1) it is to ensure the equality of education opportunity that is the dominant element justify the government' finance , whereas externalities are the secondary reason for government provision; (2) educational media institution should have significant impact on maintaining or increasing the quality of higher education, and the role of government should be minimize to promote the competition between the regulatory institutions.Finally, an empirical survey is made to China's market-oriented reform of higher education. The present matters are explored and three countermeasures are recommended: further the deregulation of higher education industry in china; construct the finance system with state-financed student loan and education voucher; accelerate the development of educational media institutions in china.