Promoting Non-government Funded Higher Education By Capitalized Financing

At present, under-capitalization of higher education, especially non-government funded higher Education, has become the bottleneck restraining the development of China's higher education. As the key aspect and endogenous impetus of its rapid advancement, higher education financing has been the focal and difficult point in the field of higher education development research. This paper makes a study of diversified financing methods on China's non-government funded institutions of higher learning at the angle of financial innovation, and investigates innovative approach choices of China's non-government funded education by capitalized financing. In theory, it also tries to exploit the financing channels of non-government funded institutions of higher learning, and to enrich non-government funded education financing methods, so as to solve the capital bottleneck in the development of China's non-government funded education and improve the financing efficiency of non-government funded education.Logically from theory to practice, this paper minutely analyzes theories related to higher education financing, defines intension of higher education financing, properties of higher education products and duality of higher education, on basis of which it analyzes motive of non-government funded institutions of higher learning's capitalized financing at the beginning. In the second place, integrating with investigated data, it analyzes current situation and predicament of non-government funded institutions of higher learning in this country, in comparison with which private institutions of higher learning's financing in developed countries. Meanwhile, it indicates main reasons obstructing the development of non-government funded institutions of higher learning are financing issues. Based on these, this paper proves academic feasibility and necessity of both diversification of financing channels and innovation of financing methods of non-government funded higher education. Finally, combing the actual situation of China's non-government funded institutions of higher learning, it brings forward several feasible financing channels and methods for domestic non-government funded institutions of higher learning.