The Economic Impact of Government Policy on China’s Private Higher Education Sector

This book provides an overview of the growth of the private higher education sector in China and in addition provides an analysis of some of the key drivers of this growth and impediments to it. What is new about the book is that it combines the results of a series of interviews with work that is more quantitative in nature. The book is of use to not only those engaged in academic research but also those who more generally wish to know more about an educational sector that is growing in importance. The most obvious factors promoting expansion of this sector have been the growth in per capita incomes, higher levels of participation in secondary school education, the strong growth in demand for graduates and the inability of the public sector to keep pace with demand. All of these factors intermingled with the involvement of government regulation. This regulation, however, is not uniform across all of China given the different provincial government departments of education that arealso involved in dealing with private higher education institutions. In particular, this book looks at the way in which the Chinese government’s regulatory framework (both national and provincial) influenced the development of the sector and the way in which it operates, especially the private higher education component of that sector. The analysis undertaken finds that there is a link between regulation and the private higher education sector growth and a link between the funding of the government sector. The more intense regulation was, and the more funds provided to the state sector, the less scope there was for the private sector to expand. Growth of the private sector, therefore, did not just depend upon rising demand for higher education overall, but also to a fair degree of tolerance on the part of government. Much of this work, in subsequent years, has been supported by the further changes that have been undertaken in the Chinese higher education sector. Over the years, the growth of the Chinese higher education sector has stabilised, as has the private segment of this sector.