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The Countermeasures of the Development of Higher Education of Henan Province by the Comparative Study on the Economic Environment in the Central Part of China QIAN Tongzhou Department of Sociology, Huazhong University of Science and Technology, China, 430074; & School of Law, Henan University of Technology, China, 450001 [email protected] : Abstract The close relationship between higher education and the regional economic environment influences the development of the regional economy as well as the investment in education. The level of regional economy and the development potentiality are important indexes for references to the educational distribution. This paper compares and analyzes the economic environment in central part of China, including Henan, Hubei, Shanxi, Anhui, Jiangxi and Hunan from the prospects of economic scale, the economic structure, economic efficiency and the degree of economic openness. The comparison shows that Henan’s higher education still lags behind, in which the per capita GDP of Henan is less than that of other provinces. The development of the tertiary industry and the degree of economic openness become the blocks of economic development in Henan. The analysis indicates that the higher education of Henan needs more investment and should be adjusted and optimized. This article focuses on structural adjustment and optimization of Henan higher education, fixing the cooperation in three aspects of adjusting direction, that is, the reasonable arrangement of educational resources, reoptimization of the higher educational resources, and construction of the market-coordinated operational mechanism, etc. Keywords: central part of China, economic environment, higher education, adjustment, optimization 1. Introduction The central part of China includes six provinces, which are Henan, Hubei, Shanxi, Anhui, Jiangxi and Hunan. In recent years, under the influences of the national policy of widely opening and expanding domestic demand, the economy of the central part of China presents a trend of rapid development. Henan, the province of the largest population in China, faces the pressure that other provinces of the central part will surpass it as it develops quickly in economy. By analyzing the four index system corresponding to the total economic amount, economic structure, economic benefits and the degree of economic opening to the outside we can draw the conclusion that compared with the other provinces in the central area of China, the per GDP, the development of the third industry, and degree of the economy opening to the outside of Henan still lag behind. It becomes an urgent task to study how to integrate the higher education with the development of local economy of Henan based on the comparison of the economic environment of the six provinces to make the higher education adapt to the development of local economy, harmonizing economic environment and attracting more foreign investment as well, which will make Henan play an import roie in economic development in the central part of China. 2. The Analysis of the Economic Environment of Henan by the Comparative Study in the Central Part of China 2.1 The higher education and the provincial economic development Higher Education Law of the People's Republic of China stipulates that the main task of the provincial 379 higher education is to foster talents for the local area. The Ministry of Education also requires that the development of higher education keep the pace with the level of regional economy. The correlation between higher education and regional economy in fact is a typical reflection of the relationship between education and economy. On the one hand, the economic development has decisive effect on the higher education. We know that the economic system determines the higher education system, in which economic structure determines higher education structure and the demand and supply of the market determine the demand and supply of the higher education, etc.; On the other hand, the higher education, which aims at training specialized talents by means of profound and professional knowledge and skills, combining education with scientific research, counteracts the regional economic development greatly. If the higher education adapts to the demand of economic development, it will nicely promote the development of economy; otherwise, there will be negative effects. Therefore, the development of the higher education must serve the economic development and the economic development must depend on every progress in science and technology concerned with higher education. Currently, in the labor market of Henan even the whole country, there exist two kinds of phenomena of excessive education and education shortage. Excessive education leads to excessive consumption of talents and the reason of education shortage is that the higher education cannot exactly meet the need of the society. So, the higher education should be guided and controlled in total amount. We must avoid the phenomenon of expanding the scale aimlessly but neglect its quality and efficiency in higher education. We must keep the balance between the higher education and economy in structure, in scale and in quality. 2.2 The analysis of the economic environment of Henan The economic environment is the most important factor that influences the investment activity and directly relates to the investing effects, which are the focuses concerned by the investor. Only when the investors clearly know the economic environment of his investment, can they make the reasonable investing decisions and get more profits. And only when the investees clearly know the local economic environment situation, can they make full use of the advantages of investment and continuously improve and optimize the economic environment for investment to attract more foreign investments. First, the economic scale is an important factor in the economic investment environment in a region and influences the investment activities in various aspects. Economic scale and economic development level relate closely. Generally speaking, the key points of industry in development are various in different provinces due to their different economic levels, so the investing items are different. In addition, the economic scale is relevant with the macro economic investment environment so that the province with a larger economic amount and better economic foundation can enjoy more advantages of drawing on more foreign investment easily. The indexes selected for economic scale analysis in this part are the regional total output value and its growth speed and per capita GDP (Table 1). Table 1 The comparison of economic scale in the whole country and central six provinces in 2005 and 2007 2005 2007 Region GDP in the region(total output Per capita GDP in the region(total output Per capita value in the region) GDP value in the region) GDP The GDP Absolute Absolute value The GDP Absolute Absolute value (100million year growth value (100million year growth value yuans) rate (%) (yuan) yuans) rate (%) (yuan Whole country 182321.00 9.9 13985 246619 11.4 USD 2456 Henan 10535.20 14.1 11236 15058.07 14.4 16060 Jiangni 4056.2 12.8 9439 5469.3 13.0 12562 Anhui 5375.8 11.8 8597 7345.7 13.9 12015 Hunan 6484.5 11.4 11431 9150.01 14.5 16055 380 Hunan 6473.61 11.6 10366 9145 14.4 14405 Shanxi 4179.52 12.6 12320 5696.2 14.2 16835 Data source: The National Statistical Bureau of the People's Republic of China. The 2005 and 2007 Statistics Bulletin of the National Economic and Social Development of the People's Republic of China, the 2005 and 2007 Statistics Bulletin of the National Economic and Social Development of each and the Central Six Provinces of China. ( ) From the data in table 1, we can see that the GDP of Henan and its growth rate rank first in the central area of China in 2005 and in 2007 GDP of Henan is still in the first place but the growth rate is in the second place in the central part, following Hubei province. GDP and the growth rate in Henan attain first place in 2005, which is 4.2% higher than the whole country's average growth speed(9.9%); As for per capita GDP, which is lower than the national average level , is in the third place in the center department in 2005; per capita GDP in 2007 hits second in the center area, following Shanxi province. So, it is clear that Henan needs the power to keep the high growth rate continuously. Judging from the overall economic situation, we can come to the conclusion that Henan is in the transitional stage from the initial stage to the middle of the industrialization. The per capita GDP shows that Henan is in the medium on revenue in central area now, which indicates that developing of the present economy is greatly in need of educational support. Second, economic structure comparison. The industrial structure of a district is determined by its economic level. The present condition of the industrial structure and its development trend are the important indexes for the economic investment environment in a district. The influence of the industrial structure upon the investor mainly includes two aspects. One of them is the competition in the original industry that an investor must takes into consideration. The other is cooperation between industries. The existence and development of business enterprises all need the cooperation of other business enterprises. If the present condition of a regional industrial structure is good, the lately joined investors would be able to get good cooperation, whereas it would be a hard nut. Therefore, the investor will reduce the risk of investment if he could understand the industrial structure condition of a region well. The indexes selected for the analysis of economy structure are the three industrial structures ratio and the added value Table 2 . ( ) Table 2 The comparison of economic scale index in the whole country and central six provinces in2007 The First industry The Second industry The Third industry Region Added value Ratio Added value ratio Added value ratio (100million yuans) (%) (100million yuans) (%) (100million yuans) (%) Whole country 28910 11.7 121381 49.2 96328 39.1 Henan 2365.91 15.7 8280.25 55.0 4411.91 29.3 Jiangxi 910.0 16.6 2827.3 51.7 1732.0 31.7 Anhui 1214.7 16.5 3282.6 44.7 2848.4 38.8 Hubei 1422.80 15.5 4094.19 44.8 3633.02 39.7 Hunan 1611.45 17.6 3901.16 42.7 3632.39 39.7 Shanxi 313.0 5.5 3394.7 59.6 1988.5 34.9 Data source: The National Statistical Bureau of the People's Republic of China. The 2007 Statistics Bulletin of the National Economic and Social Development of the People's Republic of China, the 2007 Statistics Bulletin of the National Economic and Social Development of each and the Central Six Provinces of China. ( ) Table2 shows that proportion in structure of three industries in Henan is 15.7:55.0: 29.3, which indicates that the proportion of the second industry is comparatively large and the third industry seriously falls behind. Compared with the other provinces in the central China, the proportion of the second industry in GDP of Henan hits second in the six provinces. It is 4.6 percentage lower than that of Shanxi province, 381 3,3percentage higher than that of Jiangxi province and 13, 3 higher than Hunan. But the proportion of the third industry in GDP of Henan hits the last in the central China in 2007. Therefore, Henan needs to strengthen the development of the third industry urgently. Third, economic benefits comparison. The economic benefit is a capital lucrative environment and the important part of the economic investment system, which reflects the chance of profits that business enterprises can make. Making profits is the main purpose of the investors. More profits will attract more investors. Whereas, lower investment repay will influence the investing confidence and leads to less foreign investment. This paper chooses the added-value of industry of the enterprises with considerable scale and the profits of the enterprises and industry with considerable scale as the index (Table 3). Table 3 The comparison of economic benefit index in the whole country and central six provinces in 2006 The Added-value of industry of the the profits of the enterprises and industry enterprises with considerable scale with considerable scale Region Absolute value growth Absolute value growth(%) (100million yuans) (%) (100million yuans) Whole country 79752 16.6 18783.6 31.0 Henan 4150.6 23.4 1145.3 75.0 Jiangxi 1189.3 22.7 198.1 75.0 Anhui 1762.7 20.3 230.9 35.1 Hubei 2303.5 20.0 408.9 24.1 Hunan 2003.2 20.1 264.8 39.4 Shanxi 2086.6 18.3 367.1 41.3 Data source: The National Statistical Bureau of the People's Republic of China. The 2006 and Statistics Bulletin of the National Economic and Social Development of the People's Republic of China, the 2006 Statistics Bulletin of the National Economic and Social Development of each and the Central Six Provinces of China. ( ) The data in table 3 shows that the economic benefits of Henan are of obvious advantages. Firstly, the added-value of industry of the enterprises with considerable scale is in the leading place. Both of the growth speed of two economic indexes is higher than that of the whole nation and the highest in central China. Both the added value of industry and profits of the enterprises with considerable scale are the first in the central China, which indicates that Henan is of the greatest advantages in the central area on these two aspects. The improvement of Henan economic investment benefits is mainly attributed from the government’s efforts to develop the second industry and more investment in recent years, which provides necessary infrastructure and complete industrial system for foreign investor as well. By analyzing the various indexes of economic environment in central China and by comparing the various indexes of economic environment among the six provinces, we can see clearly that Henan both has advantages, such as the rapid developing speed and disadvantages, such as low per capita GDP, low proportion of the third industry, low degree of economy openness, etc. And the purpose of analyzing and comparing these data, in this paper, is to draw the conclusion that the higher education must keep the practical pace of the development of economy in Henan province. 3 Conclusion 3.1 Optimize the Allocation of Resources of Henan Higher Education The apparent advantages in higher Henan economic benefit analysed above suggest that the higher efficiency of resource allocation in economic development in Henan province. Developing perfect higher education markets is the foundation of resources allocation. Consequently, it is necessary for Henan higher education to optimize the allocation of resources and make higher education really serve regional economic development, which includes the following aspects: pursuing social and educational 382 management benefits, having access to government funds by offering higher education service, sponsorship from social and industry groups and tuition fees from students; Under the influence of supply-demand relationship and pay signal in the talent market , students, based on their individual achievements in University Entrance Test, have access to choosing universities autonomously and pay tuition fees following the principle of maximizing personal interests; According to the supply-demand situation in talent markets and the company’s development, employing units have access to selecting graduates autonomously and deciding these promising employee’s pay in the principle of maximizing profit and efficiency; At the same time, the pattern of higher education resources allocation requires higher education institutions necessarily to be legal entities opening to the society. 3.2 Optimize the Educational Structure The above data shows that the proportion of Henan’s secondary industries is high. The industrialization is the first choice of Henan regional economic development. Without industrialization, it is impossible for Henan to realize the rapid development of regional economy and really speed up the urbanization. In the process, much importance is attached to the development of the heavy chemical engineering industries. All these require higher education to supply talent, knowledge and technology, adjusting the geographical distribution and balancing the proportional relations between levels of running a school and professional setting of higher education. To serve Henan secondary industries better, higher education should be optimized to build close partnerships between industries and economic agencies, to form creative and flexible course training system. In 2007, the proportion of the tertiary industry of Henan in GDP is the last one on the GDP list of central region which requests Henan not only to make great efforts in the third industry but also to adjust itself to strengthen the talent training. 3.3 Promote the Commercialization of College Research Findings The analysis of each index in the central regional economic environment shows that economic environment of Henan still has its advantages in the central six provinces, which includes the quick economic development, the extension of total amount, the increasing industrialization and the industrial added value and profits of large-scale enterprises. But according to the data released by Henan Department of Education, the amount of transition of science and technology achievements of Henan universities is far below its science and technology output of Henan. In order to fully take economic environment advantages of Henan in central six provinces, higher education institutions must take measures actively to promote science and technology transfer into practical productivity and establish and improve "dynamic self-generating” mechanism, guiding science and technology personnel in universities to be actively involved in science and technology transition. Author in brief: Dr. QIAN Tongzhou(1968-), Male, born in Pingyu, Henan province, Vice-professor of Henan University of Technology. Box 219, Henan University of Technology, No.195 Zhongyuan west Road, Zhengzhou, Henan Province, 450007 References [1]. Sheng Congfeng, Xu Weixuan, Xu Baoguang. The Evaluation on the Provincial Investing Environment Competition in China [J].China Management Science, 2003(6). (in Chinese) [2]. Deng Hongbing, Li Junjie, Liu Daowei. The Study on the Tactics of Hubei province on Optimizing the Investment environment [J]. Business Times, 2006(31). (in Chinese) [3]. 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