Analysis of Change Characteristics in Investment Growth of Higher Education in China

Basing on the statistical data of higher education investment funds during the period of 2005-2013 collected from National Bureau of Statistics of the People’s Republic of China and Ministry of Education of the People’s Republic of China, this article analyzes changes in the growth of the total investment funds; changes in growth of average investment funds among provinces and cities; changes in growth of investment funds from learners; changes in growth of investment funds and financing from social forces, thereof the change characteristics in investment growth of higher education in China will be identified.


Introduction
Investment in higher education development is an important task in the training strategy of talents to serve Chinese economic growth. In fact, investment in higher education development in China has significantly contributed to promoting scientific and technical progress, increasing labor productivity, reducing production costs and forming preconditions for Chinese sustainable economic growth as well as improving economic competitiveness internationally. In 2014, the output value of the high-tech sector in Shanghai city accounted for 20% of the total industrial output value of Shanghai city and the factor of scientific and technological advances also contributed up to 53% of Shanghai city's economicgrowth rate [10]. Thus, higher education investment is naturally favorable for the scientific and technological advancesand developments, thereby the economic growth is higher.
In recent years, investment funds of higher education in China have been increasing. The training scale has been continuously expanded. Chinese higher education is coming into a stage of education massification and is in the process of universalization. However, there are heterogeneous variations, reasonable nor logical variations appearing during the variation of investment fund growth for Chinese higher education development. This problem naturally has a close relationship with the variation in GDP growth. This article is based on the statistical data of the National Bureau of Statistics of China and the Ministry of Education of China to analyze variations in the correlation between GDP growth and investment growth for Chinese higher education in recent years. Thereby, drawing some basic characteristics as well as pointing out the causes and rationality in investment growth variation for Chinese higher education development.

Features in Chinese GDP Growth Variation During 2005-2013
Coming into the 21 st century, China continues to accelerate the process of economic restructuring leading to higher GDP growth. However, GDP growth during the period of 2005-2013 is varied by the global financial crisis during the period of 2008-2010 and by a low recovery process of economic growth during the period of 2011-2013 as well as uneven economic developing capacity among economic zones, provinces, urban areas and rural areas.

High GDP Growth, Low Inflation
2005-2013, Chinese GDP growth remains at high rate, but variations in GDP growth over the periods are heterogeneous.
In particular, Chinese GDP growth is reached high growth in the period of 2005-2007, an undulating increase during the period of 2008-2010 and growth is tended to go down during the period 2011-2013. 2005-2013, Chinese GDP growth is averaging 9.62%, in which, the high growth in the early period (2005)(2006)(2007). This is the period when China accelerates the process of economic restructuring, so GDP growth always reaches double digits (11.3%-14. Economic growth inevitably leads to inflation growth. However, inflation growth index during the period of 2005-2013 is still low, and lower than GDP growth performance (see Table 1). Especially, the period of 2011-2013, index inflation of 2011 is more than 5%, it is maintained below 3% during the remaining two years. This allows Chinese economy in this stage reaches warm and safe growth condition.

Per Capita GDP is Fast Growing, Per Capita GDP Difference Among Provinces, Cities, Is Increasingly Narrow
High GDP growth leads to fast growth of per capita GDP over the years, the difference in per capita GDP among provinces and cities is into increasingly narrow.   [8]. However, Tianjinwith the highest difference of Per capita GDP and Guizhou with the lowest difference of Per capita GDP fell to 4.32 times in 2013.

Growth in Per Capita Income in Urban Areas and Rural Areas Is Clear Difference
2005-2013, per capita income in urban areas and rural areas is increased over the years. Compared to 2005, per capita income in urban areas is increased by 2.56 times in 2013, per capita income in rural areas is increased by 2.73 times. In the period of 2005-2013, the average annual per capita income in urban areas is increased by 2058 yuan, rural areas is increased by 714.28 yuan. At the same time gap per capita income between urban areas and rural areas is 3 times.
Rating by level of provinces and cities, per capita income between urban areas and rural areas are also not different. Statistical Report of National Bureau of Statistics of the People's Republic of China shows that in 2013, Provinces of Heilongjiang, Tianjin, Beijing, Shanghai and Jilin with the lowest difference of per capita income of urban areas and rural areas (2.03 to 2.32), the highest difference is at provinces of Yunnan (3.78), Gansu (3.71), Shanxi (3.51), Guangxi (3.43). It is divided by economic sector, the highest difference per capita income of urban areas and rural areas is the West (3.3), followed by the Central (2.8), the East (2.5).
From the analysis of variation in Chinese GDP growth in the period of 2005-2013, it shows that variation in GDP growth over the period is heterogeneous. Growth in per capita GDP and per capita income has a clear difference between provinces and cities, between urban areas and rural areas and between economic sectors. However, in the terms of overall perspective, Chinese GDP growth in the period during 2005-2013 maintains at safe and high rate, becoming a bright spot in the global economy at this stage.

Variation Features in Investment Growth for Chinese Higher Education Development During the Period of 2005-2013
Variations in GDP growth directly impact on variation in investment growth for Chinese higher education development. Through research on variation in investment growth for Chinese higher education development is based on statistical data during the period of 2005-2013, this article discovers some basic variation features as follows:

Total Investment Funds Are Continuously Growing, Training Scale Is Constantly Expanding
Due to the high GDP growth rate and maintaining at safe rate, per capita GDP, population size is increased slowly and in order to achieve the objective of developing talents to serve the process of economic-social development, the total investment funds for higher education development has increased rapidly along with economic growth in recent years. From the National Bureau of Statistics' statistical data of higher education budget, it is shown that in 2013, total investment funds for higher education development reaches 774.26 billion yuan, up 2.9 times compared to 2005. In particular, in 2007 GDP growth reaches 14.2%, total investment for higher education reaches 376.23 billion yuan, up 41.6% compared to 2005. After a period influenced by the financial crisis, economic growth tends to downward, but China continues to increase accelerating investment in higher education development. Specifically in 2011, total budget investment reaches 702.09 billion yuan, an increase of 46.7% over 2009. Increase in investment funds has led to scale of schools, scale of students and higher education enrollment performance increased rapidly over the years. 2005-2013, scale of schools has increased by 1,2 times, scale of students in universities has increased by 1,48 times for in 9 years. Higher education enrollment performanceis also increased over the years. 2013 per capita GDP reaches 43320.1 yuan, Higher education enrollment performance reaches 34,5%. The enrollment performance is increased at the beginning of the 21 st century, marking a historic shifting step in Chinese higher education. Chinese higher education moves to popularization and is in the process of universalization of university education.
Thus, the analysis result shows that the continuous increase in the total investment funds has solved the problem of supply and demand in higher education. However, the growth rate of total investment funds of higher education development is higher than the growth rate of training scale. This is easy to realize total investment funds of Chinese higher education development is still missing and is not commensurate with the need to expand the training scale.

Growth in Average Expenditure for Higher Education Between Provinces and Cities Has a Clear Difference
Continuous increase in total investment funds is natural. However, there is a difference in average higher education expenditure between regions, between provinces and cities is inevitable. 2005-2011 the average higher education expenditure of 31 provinces and cities has increased every year, but due to the financial capacity, the investment mechanism of higher education, education market competition mechanism at the localities as well as educational investment orientations in localities are not the same make the average higher education expenditure between regions, between the localities very different. During seven years from 2005 to 2011, the average higher education expenditure in Beijing and Tibet is highest and the other provinces like Ningxia, Inner Mongolia, Guizhou, Henan, Jiangxi are still at lowest. In the period of 2005-2011, the highest and the lowest difference in average higher education expenditure among provinces and cities is expanded from 3.68 times to 5.01 times (see table 6).
The difference in higher education investment among provinces and cities makes training quality significantly impact on economic growth at the localities. Especially the provinces and cities with hot developing economy, wealth disparity, productivity gap, high difference in the level of scientific and technological progress between urban areas and rural areas and this requires local and national government to apply new and reasonably policies in adjusting investment funds of higher education in order to shorten the gap between investment in higher education between localities in the province as well as between the provinces and cities nationwide.

Investment from Learners: Total Tuition Revenue Is Fast Growing, Tuition Standard Is Less Varied
Total tuition revenue has been increased over the years, but variation in total tuition revenue of total investment funds tends to decrease. Total tuition revenue in 2011 reaches 186.23 billion yuan, an increase of 2.22 times compared to 2005. Total tuition revenue of total initial investment funds of a high percentage (over 30% of the total investment funds), then fell down to 26.52% in 2011. In respect of standards of tuition fees. Variation in the standard tuition revenue of higher education is relatively slow. Specifically, in 2013 the standard academic year tuition revenue of universities under project 985 ranges from 4500 yuan to 5300 yuan, the universities of project 221 ranges from 3850 yuan to 6000 yuan. Total tuition revenue of the provincial universities ranges from 3500 yuan to 5000 yuan [1]. Compared to standard norms for average tuition revenue at universities in 2005 is 4968 yuan [2], it can be shown that the standard tuition revenue of universities is less varied in the period of 2005-2013.
Through analysis of the tuition problem, it shows that tuition revenue has grown rapidly over the years, but the standards of tuition revenue are slowly varied. This reflects an increase in tuition revenue mainly comes from scale of training. The government less adjusts higher education costs may create inequity issues in higher education investment, but it is the conditions and prerequisites for the families, especially the poor families to afford their children pursuing their study in universities thereby contributing to the target of massification and universalization of higher education.

Limited Investment and Funding from Social Forces
Investment funds of social forces for Chinese higher educationslowly grows and accounts for a limited ratio of total investment funds for higher education development in China. The highest is in 2005, accounting for 1.15% of the total investment funds, the remaining years account for less than 1% of total investment funds. It shows that the benefits of investment in Chinese higher education development have not really attracted society to join in investment. Funding social force for higher education investment is also limited. 2005-2011, funding of social forces for the annual higher education accounts for less than 1% of the total investment funds. The highest is in 2011, total financing from the social forces in 2011 reaches 4.34 billion yuan, accounted for only 0.62% of total investment funds.

Conclusions
Via analysis of change characteristics with the correlation between GDP growth and growth in investment and development of Chinese higher education in the period of 2005-2013, we can draw some key following conclusions: Total investment funds of higher education have grown rapidly along with GDP growth. However, the growth rate of investment fundsis higher than scaling speed of training. That reflects investment funds of higher education development is still lacking compared to the need to expand the scale of training to aim at the objective of higher education universalizationin the future. The gap in per capita GDP and per capita income between provinces and cities, between urban areas and rural areas and between the economic areas reflects the economic development capacity is uneven across provinces and economic sectors. This directly impacts on average higher education expenditure between provinces and cities and between economic areas. Although the investment funds of the provinces and economic areas for students have increased over the years, but it is clearly imbalanced. Limited investment of social force for higher education shows that Chinese Higher Education has not really attracted individuals, organizations and businesses to join in investment. Price and solvency of students for higher education through tuition collection standards are relatively slow varied in the fast growth of per capita income which is the premise for the families to increase investment in higher education, step by step implementation of the higher education universalization plan. Through statistical analysis of total investment, investment rate from learners and social forces, it is shown that the investment budget from the state still plays a dominant role in the investment and higher education developmentin China with an annual rate of more than 50% of the total investment funds.
Maintaining the key role of investment in higher education development in China will help Chinese government regulate macro investment in higher education development in accordance with the outlined objectives, strategies. However, economic growth tends to go down and not easy to forecast in the near future, and to implement strategic goals in the middle of the 21 st century, China will become a powerful country of higher education both in size and quality. China must also quickly enact reasonable and timely policies to raise additional investment capital outside the State budget. Especially from the social forces.