Research On Diversified Financing Channels In Chinese Universities

In 1999, Chinese government began its campaign for higher education expansion, thus higher education entered a period of popularization. The attendant is increasing intensification of contradictions between the rapid development of higher education and insufficient funds for education. Since the potentials of two main funding channels, i.e., the government funding and tuition were very small, developing diversified multi-channel financing results.There are four chapters in our thesis. In the first chapter, by the use of public economics theory of public goods, we analyze two features of higher education: i.e., the accurate public goods attributes and the inevitability of diversified supply.In chapter 2, we analyze the status and the problems of our national universities' financing channels. Now, financing higher education mainly relies on the government funding, tuition income, and bank loans. The main problem is inadequate financial allocations, limited tuition increases, low percentage of donating funds and rising funds. The existing pattern of funding results in the following problems, e.g., inefficient use of funds; increasingly fierce competitions among universities; private capital is hard to enter universities, and serious dependence on bank loans financing; these problems triggered the emergence of college financial crisis.In chapter 3, we introduce the status and the trend of multiple-source of funding abroad, such as in the Unite States, Six EU countries, Japan, Australia and India. A common trend is financing higher education mainly relies on the government funding, but allows multiple-source of funding to come and supplement the gaps.In chapter 4, we propose innovative ideas to accelerate our diversified financing channels, i.e., to insist that the government investment as the mainstay, to make efforts to expand diversified financing channels beyond the tuition, such as donation,education bonds,education Lottery,BOT project financing,financing lease,attracting private capital,recruitment of overseas students,expanding revenue of school-run enterprises,Individual request loans by the cooperation of banks and schools, etc.The innovations of this thesis are summarized as the following. First, to analyze the status and the problems of our national universities' financing channels, based on the theory of public goods, we cite rich empirical statistical data as the supplementary notes of theoretical analysis; meanwhile, induction and deduction are combined used together with the comparative analysis method. Second, based on above results, through learning some successful diversified financing channels of foreign universities, we propose suitable financing channels for Chinese national conditions.The topic of universities' diversified financing channels is a relatively new field with constant changes and developments, some of the financing methods discussed in this thesis are still in the exploratory phase. Because of some limited factors such as short of experience,knowledge and insufficient access to information, the study of some issues are still not in-depth. In future learning and research, we will make up for the inadequacies.