Research On The Efficiency Evaluation Of China’s Compulsory Education Finance

With the economic development, advanced science and technology and a highlevel quality of the people become the key factors to win in the competition of theworld jungle. But upgrading the science and technology and improving the quality ofthe people depend on the development of education, so education is very important tothe pattern of the world and the international competition. Compulsory educationplays a cornerstone role in reducing the illiteracy rate, improving the knowledge andculture level of the people, enhancing the overall quality of the citizens and promotingthe economic development. But the total expenditure of compulsory education financeis insufficient and inefficient, which seriously hamper to the development of China’scompulsory education. If we want to promote the development of compulsoryeducation, we must to improve the efficiency of compulsory education fiscalexpenditure. So it is important to study on the efficiency of compulsory educationfinance and its evaluation.In this paper, I research on the efficiency of China’s compulsory educationfinance. First, I explain the basic theory of compulsory education, education finance,the compulsory financial efficiency and DEA-Malmquist evaluation methods. Second,I descriptively analyze the basic situation of compulsory education’s financialinvestment and compulsory education’s development. Third, based on the data of2000-2011, which is about the inputs and outputs of China’s compulsory educationfinance, I empirically analysis the efficiency of compulsory education finance ofChina’s overall and inter-province by DEA-Malmquist index method. At last,according to the results of empirical analysis, I put forward some relevant policyrecommendations.After I analyze the efficiency of compulsory education finance, I find that during2001-2011the efficiency of China’s compulsory education finance is overall recession.Pure Technical Efficiency, Scale Efficiency and Technical Efficiency respectivelyincrease0.3%、1%and1.2%,but Technological Progress reduces26.1%，which leadsto the Total Factor Productivity reduces25.2%. These results prove that thedevelopment of compulsory education in China is extensive, financial investment isnot fully utilized, compulsory education finance is inefficient and the development ofcompulsory education is at the expense of high investment. TFP’s recession ofcompulsory education finance mainly is due to the backward of Technological Progress. And the Technical Efficiency only can affect the TFP of compulsoryeducation finance in a limited range. Therefore, if we want to improve the financialefficiency of compulsory education, the key is to improve the Technological Progress.The innovation of this paper is that I try to study on the financial efficiency of thefield of compulsory education, by DEA-Malmquist relative efficiency evaluationmethod based on2000-2011of12years in all31provinces of compulsory educationfinancial input and output data, a total of3720observations, and that in the empiricalanalysis section,31provinces were ranked and grouped in six groups based on theTFP index of all provinces’ compulsory education finance, divided the provincescompulsory education financial efficiency level.