The Higher Education Reform with Transformation of the Economic Growth Mode

The Higher Education Reform with Transformation of the Economic
Growth Mode
LUO Lihui, LEI Cheng
Faculty of Management and Economics, Kunming university of science and technology, 650093
[email protected]
Abstract: With the development of economic globalization and the advent of a knowledge-based
economy, China's economic growth mode has to change from extensive to intensive type. It is obviously
that human resource would play a key role in this process. On the one hand, the transformation of the
mode of economic growth in demand of higher education promoting reform. On the other hand, reform
of higher education is also influence the quality of the transformation. We will take some conclusions
through the empirical analysis of the influence from higher education to economic growth and
transformation of the mode of growth. Moreover, we will give some suggestion on the higher education
reform in the process of transformation of the mode of economic growth.
Keywords: production function in education, structural changes, the mode of economic growth, reform
of higher education
1. Introduction
The traditional economists, like Adam·Smith, believe that the investment of the capital of matters
and humans has the same, and point out: Education is good for the throughput of the worker, just like
factories or corporations can improve their own throughput by purchasing new machines or other kinds
of the materials. In the 1920s, Russian economist Sitelumilin used predigestion way of laborage labor to
measure the influence of economical growth which caused by the investment of education. In the 1950s,
Schulz separated the capital of matters and humans, computed educational capital stocks and yield by
the educational improvement in a certain time, and measure the educational economical benefit. In the
1980s, Denison point out that quantified way of education could measure the contributions rate of
economical improvement caused by education. In the article, I use the numbers of the economical
production capital investment and the labor of different educational levels from 1981 to 2005,
Cob-Douglas production function, and multiple linear regression to get the educational production
function, and to analysis the contribution of the economical improvement, using Zou Shi parameters
stability test, analysis the economical growth changing structure under the educational production
function. Giving some advices of higher educational reform which under the changing way of
economical growth through the results of empirical analysis.
、
2. The empirical analysis with the influence of higher education on economic growth
2.1 Education production function
It have to reveal the contribution and effect regard to education on economic growth through the
aspect of different education level labors with aim of estimating the contribution rate and the impact of
education on economic growth ,meanwhile considering the effect regarding public education in China
economic growth .
To adopt the Cobb- Douglas production function as investigative model, it makes aggregate output,
devoted capital and different education level labor as explanatory variable respectively. It concludes the
education production function through multiple linear regressions.
The education situation of our nation could classify three sorts: high education (junior college,
undergraduate and postgraduate); secondary education (middle school and vestibule school) and primary
education (elementary school and illiteracy).To adopt L1,L2,L3 represent three level respectively in
education production function. The Cobb-Douglas function which through the disposal of disassemble
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different education level labors demonstrates:
Y=A.Ka.L1b1.L2b2.L3b3
1
A means elasticity of capital output, b1,b2,b3 represent the output elasticity of high education level
labor ,secondary education level labor and primary education level labor respectably. And these
coefficients reflect the contributive rate of different education level labor on economic growth. The data
of Y K L1 L2 L3 of (1) formula show in Table 1.
（）
、、 、 、
Year
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
GDP
4425.026
4823.677
5349.171
6160.97
6990.696
7610.61
8491.2663
9448.0287
9832.1833
10208.808
11147.7316
12735.0874
14510.8964
16409.9248
18203.8543
20026.7766
21885.9399
23600.1392
25401.3169
27539.5359
29826.343
32537.1698
35798.8598
39408.4634
43518.1928
Fixed
asset
investment
886.1873
1108.42
1255.64
1555.93
2024.259
2343.557
2675.133
2941.682
2561.284
2483.763
2857.556
3579.556
4574.194
5401.983
5991.847
6878.64
7483.96
8524.231
8958.9607
9881.74
11166.37
13053.48
16722.75
21237.89
26759.74
Table 1
High
education level
labor
373,0703
396.0917
420.63
461.08
503.78
545.35
590.42
666.20
742.90
930.58
1094.44
1142.60
1246.14
1345.13
1533.34
1970.93
2484.50
2502.44
2742.45
2912.97
3512.50
3856.60
4086.32
4339.04
4215.87
Secondary
education
labor
15981.49
16555.32
17181.32
17350.92
17954.28
18461.52
19054.66
18473.56
18258.57
20056.56
23975.63
25238.29
26549.2
28895.57
31255.62
33598.8
34800
35538.16
36563.55
38065.25
35395.22
36560.29
38265.49
39622.88
38503.94
level
Primary education
level
27371.85
28345.61
28836.76
30388.21
31419.99
32282.02
33147.72
35208.43
36345.62
42943.65
39754.19
39201.29
38609.17
36993.05
35196.54
33323.4
32364
31970.35
31340.18
30238.75
34847.53
33323.10
32087.64
31238.08
33097.61
Illustration:1 The data is from <<China statistical yearbook>> and <<China education statistical
yearbook>>;2 The base period of Y represents GDP adopt comparable prices as 1978.3 The base period
of K represents society aggregate investment adopt comparable prices as 1978.4, L1 L2 L3 represent
three level of education labor respectively.
、 、
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5 0 00 0
4 0 00 0
3 0 00 0
2 0 00 0
1 0 00 0
0
82
84
86
88
90
92
94
L1
L2
96
98
00
02
04
L3
Fig 1: The curve of growth regarding different education labors
To acquire the multiple linear function equation through take true logarithm of both sides of (1)
formula:
ln Y = c + a lnK + b1 ln L1 + b2 ln L2 + b3 ln L3
(2)
It gets the education production function adopt multiple linear regression depend on using ordinary
least squares. These estimated parameters all pass correlative test:
ln Y = 4.2863+ 0.3936 ln K + 0.3211 lnL1 + 0.1479 ln L2 + 0.2752 ln L3
(3)
(2.4532) (14.1807) (6.4830)
(1.7158)
(5.0878)
R2=0.9986 ,
DW=1.5603 , F=3691.95 , SE=0.02789 , SSR=0.01556
The education production function from 1981 to 2005 goes to:
Y= K 0.3936. L1 0.3211. L2 0.1479 .L3 0.2752
2.2 The contributive rate of higher education on economic growth
Every estimated parameters of education production function passed the test, it could acquire the
contribution rate of different education level labors on economic growth.
E i=( bi x li / Y) x100%
(i = 1,2,3)
(4)
E1, E2, E3 represent the contributive rate of higher ,secondary and elementary education level
labors on economic growth; l1, l2, l3 represent the annual growth rate of higher, secondary and
elementary education level labors, Y means the annual growth rate of GDP.
And the average contribution rate of different education level labors on economic growth.
Ei*=(bi x li* / Y*) x100%
i =1,2,3
(5)
It could gain these result through computing every sort data from 1981 to 2005.
l1=16.57% l2=4.5% l3=0.5% b1=0.3211 b2=0.1497
b3=0.2752 Y*=9.64%
To take hereinbefore data into (5) formula, it could get hereinafter result through computing.
E1*=55.20%, E2*=7%, E3*=1.4%
，
，
，
（
）
，
，
，
，
3. The configuration movement regard to economic growth inside education
production function
The stratagem of transfer economic growth mode have proposed in the Fourteenth Plenary Session
of the Fifth Central Committee of the Communist Party of China in 1995.To choose 1995 as broken
point for juging weather the economic growth occurred the configurable transformation under education
production function through Chow test for parameter stability. To process logarithm equation (2) of
education production function in multiple linear regression between two periods which is 1981-1995
and 1996-2005 respectively.
3.1 The regression equation from 1981-1995:
ln Y =10.2291+ 0.4258 lnK +0.7512 lnL1 -0.5582 lnL2 – 0.3690 lnL3
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（5.4871）（22.1483）（9.1296） （-4.4607） （-3.1795）
R2=0.9992 ， DW=2.8224 ， F=3145.51 ， SE=0.0145 ， SSR=0.002104
3.2 The regression equation from 1996-2005:
ln Y= -39.1536 + 0.2327 lnK + 0.1702 lnL1 + 2.5973 lnL2 + 1.7883 lnL3
(-2.7159)
(4.8917)
(1.843)
(2.9549)
(2.9594)
R2=0.9984
DW=2.7540
F=823.6091
SE=0.0139
SSR=0.000967
，
，
，
，
3.3 The hereinbefore regression equation from 1981-2005:
ln Y =4.2863 + 0.3936 lnK + 0.3211 lnL1 + 0.1479ln L2 + 0.2752 L3
R2=0.9986
DW=1.5603
F=3691.95 SE=0.02789 SSR=0.01556
The F statistical value proves configurable transformation is based on above computed result :
F = [(0.01556-0.002104-0.000967)/5] / [(0.002104+0.000967)/(25-10)]=12.20
The critical value of number of degrees of freedom (5,15) F distribution is F0.05(5,15)=2.90
under 5% the level of significance. The computed F value is more than critical value and refuse the null
hypothesis is steady parameter. It shows the economic growth mode under education production
function occured configurable transformation in fore-and-aft period of 1995.
，
，
4. Based on the above empirical analysis:
4.1 Through the above empirical analysis from 1981 to 2005, from this paper you can see: The output
flexibility of labors who receives higher education is the most highest, that is 0.3211; followed by output
flexibility of labors who receives secondary education, that is 0.2752; and output flexibility of labors
who receives primary education is 0.1479. Meanwhile, within these 25 years, labors who receives higher
education is most contribution for economic growth, the average up to 55.20%; this was followed by the
secondary education workforce, whose average contribution rate is 7%, the last one is primary education
workforce, whose average contribution rate is 1.4%. So the development of higher education is one of
the key factors to economic growth.
4.2 The total output flexibility of workforce is 0.7422, less than 0.75, this samples tells that China still
exist the situation of some surplus labor force and decrease of marginal productivity. Meanwhile, total
output flexibility of workforce and capital is 1.1358, more than 1, this means that returns to scale
increases during this period, so it worth increasing the overall education input in the process of
economic growth.
4.3 Through the analysis of the breakpoint in 1995, the author found, during the 15 years from 1981 to
1995, the output flexibility of workforce that receives secondary education and primary education is
negative, means that in the early stages of reform and opening up and after a period of time, because of
issues, such as deviation between the allocation of resources, labor efficiency, the employment and
industrial structure, to a certain extent, such labor has hindered the development of economic
performance. Comparing the decade from 1996 to 2005, in the paper we found that the output flexibility
of secondary and primary education is positive and greater, which means that with the allocation of
resources increasingly rationalize, industrial structure and the employment structure increasingly
growing improve, changing required by the mode of economic growth make the labor efficiency greatly
improved, contribute greatly to economic output and growth. Through Zou Shi stability test parameters
the author further found that there is structural changes about economic output and growth in production
function which makes labor of a different level of education as an explanation variables in 1995.
Instruction and the Fifth Session of the 14th CPC Central Committee in 1995, the Chinese government
explicitly proposed policy of changing the mode of economic growth and its subsequent series of reform
of higher education, such as: in 1999 the University has increased enrollment policies sexual relations.
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—
5. Conclusion the trend of high education’s reformation under the change of
economic growth
According to the empirical analysis above, I know that high education gives great influence to
economic growth, moreover, there are close actions between the change of economic growth’s mode
and the structure in high education. One side, changing the mode of economic growth requires high
education’s reformation according this way to supply and complement a lot of high quality workers
who are application-oriented, innovative and pioneering compound, on the other side, the quality of high
education reformation decides the process about transformation of the mode of economic
growth .Intensive mode of economic growth requires the promotion of labor and production efficiency
and the decline of the rate about production material consumption. For the sake of assuring the change
of economic growth ‘s mode, we must vigorously promote science, technology and its application in
production and daily life, and the precondition of this is reformation and extend high quality education
for foster person with high ability. In order to adapt the development of knowledge economy and follow
structure change of economy society which is brought by the change of economic growth mode, the
high education reformation requires bold innovation and advancing with the time.
—
5.1 specialty structure reformation follow industry structure reformation, professional setup mode
of reformation envolute to synthesis development
In the industry structure of our country, basic character of reformation about industry structure at
this stage is more enlargement in the third industry and curtailment in the first industry. In the process of
more enlargement in education scale, we need to control the scale of subject professional which is
directed by learning, teaching and study, and collage enrollment expansion will focus on application
subject of new specialty, such as engineering, agriculture and economic management, aimed at
reformation and restructuring around high-tech and emerging industries subject. Meanwhile, in a long
time, because of the tie of traditional educational ideology, china’s high education divides subject too
narrow too small, artificially divided the subjects that students were confined to the narrow subject areas.
Weight scores light capacity, weight expertise taught ignored the overall quality of education, now
makes the collage graduates lack to adapt social development, flexibility of progress of science and
technology, creativity and challenge .So, now, high education must change the limitation of narrow and
small division quickly, expand the professional settings, strengthen the teaching of basic theory, basic
knowledge and basic skill which are better in summary, adapt to a wide rage, universal significance. The
knowledge and method, which are broad used and information scientific, can enhance the students’
reflect and creatively ability to the latest trends of science and technology’s development; can make the
professional setting to a comprehensive and general development; can improve the comprehensive
quality of university students; can adapt the requirement of knowledge economy time.
5.2 Strengthen the building of the contingent of enhance the quality of teachers
When knowledge economy time comes, it will be more strictly to the teachers. Teachers in
university are the leading in teaching. They play a vital role in imparting knowledge to students and
cultivating the students’ ability. But, china’s high education system still exist tow extremes problem of
the teachers’ quantity and quality. A group of teachers who graduated in 1950s and 1960s, over the yeas,
they don’t have the chance to improve themselves, and teach something by the old knowledge, which
make the teaching too old and students they taught lack of the ability of learning, absorbing and using
new technique. On the other side, young teachers are short of the experience of teaching are lack of
attitude of hard teaching and research, which make a lot of fraud and plagiarism, and the style of
teaching very worried. Therefore, the higher collages on one hand should actively create conditions of
promotion to the teachers to update their knowledge structure, so that teachers always stand at the
forefront of technological development front; the other side, they should strictly pragmatic to train a new
generation of young teachers, enhance the teaching and research Institution-building management, and
create a healthy academic atmosphere. The establishment of an old, young teachers team with the ability
，
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and political integrity, and master the latest knowledge, Is contribute to meet the challenges of a
knowledge-based economy.
5.3 Reform the current education mode, compeletly push education for life
Traditional education mode, namely one-time education, which means you may say goodbye to
you book and knowledge when leave campus. What they called one-time education means you can
receive some form of organized education again which is based to the need after you take part in the
work, it is the extend and expand in time and function of school education. The tenet is through
continuous learning to make people meet the challenges of a knowledge-based economy in the sense of
values and the modern scientific knowledge and the ability to work. In the time of knowledge-based
economy, the knowledge increases quickly, the periods of renewing knowledge is shortened,
accordingly any information is for the moment. To a university student, the knowledge learned in the
university stage is inadequate to meet the changing needs of the long-term science and technology. The
traditional education mode is inadequate to the requirement of a knowledge-based economy to education.
The full implementations of lifelong education have great significance to enhance society human capital
and adapt the changes in economic development.
5.4 The both advance in the reform of higher education and regional economic development
In China, under the ground of the change in the mode of economic increase and the imbalance in
regional economy development, we need to set “adjust measures to local conditions” Regional Higher
Education Development Strategy, to consummate the conversion mechanism of science and technology
product in university, to promote regional economic development. The study said, the central of China,
eastern part of China have high education spending flexibility, should continue to vigorously develop
high education, in higher education, enhance the general university to the first-class research university.
The need of talents in western, in addition to transmission on the eastern, mainly relying on local culture,
should be rational allocation of the resources, expanding the school channels and constructing regional
characteristics of the high education system. In properly run existing universities and Colleges, focus on
the development of higher education and vocational and technical education, and training urgent need of
talents in various trades and industries. At the same time, colleges and universities throughout the
scientific and technological achievements should also have a sound mechanism, improve the scientific
evaluation system, improve the quality of results of scientific and technological innovation, establish
and improve scientific and technological achievements into colleges and universities’ risk investment
system and intermediary service organizations. The results for the smooth transformation of
organizations are to provide the conditions of market and to contribute the local economic development.
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