A Case Study on the Issues of Resource Allocation in Chinese Public Universities

Chinese public universities have the dualism of public benefit and industry, which is a kind of quasi-public goods. The resource allocation model with the trinity of government, market and university should be established. Currently, the resource allocation among the Chinese public universities doesn't reflect the unity of public benefit and industry. The public benefit of public universities is partitioned, which is not beneficial to the masses to enjoy equal public benefit of universities. Since the school running cost of public universities fails to be compensated, its public; benefit is dismembered, and the school capital can not keep normal operation. Chinese public universities should exert the allocation function of market for rational allocation according to the school running cost and benefit. Meanwhile, the policy support of the government is needed as well. Faced with such a serious funding gap, public universities internal allocation of resources stretched.