Journal Press India®

Changing Trends in Financing of Higher Education: A Critical Review

Vol 3, Issue 2, July - December 2016 | Pages: 27-60 | Research Paper  

 
Article has been added to the cart.View Cart (0)
https://doi.org/10.17492/manthan.v3i2.7877


Author Details ( * ) denotes Corresponding author

1. * Mitali Chinara, Associate Professor, Department of Analytical & Applied Economics, Utkal University, Bhubaneswar, Odisha, India (mitalichinara@yahoo.co.in)
2. Himanshu Sekhar Rout, Head, Department of Analytical & Applied Economics, Utkal University, Bhubaneswar, Odisha, India (hsrout@utkaluniversity.ac.in)

Education in general and higher education in particular has significant favourable influence on economic development, which calls forth investment in the sector by individuals, households and nation as a whole. However, over the years, many developing countries have showed apathy towards development of higher education. They have reduced public investments in higher education, allowed laissez-faireism, and even adopted policies towards marketisation of higher education. To the extent that the markets in developing countries are ‘incomplete’ and ‘imperfect’, the outcomes are also far from perfect. However,  to compete in a global knowledge economy and to traverse along the growth path achieved by the developed countries, the developing countries like India have to accord top priority to higher education. To achieve the 12th Plan targets of 25.2 percent of GER by 2017 and / or to reach the global target of investing 6 percent of GDP in education, India needs to explore the innovative methods of financing of the sector. In this context, this review paper traces the changing trends of financing higher education across the globe over the years and the entry of private sector into the arena.

Keywords

Higher education; Knowledge economy; Federal grant; Private sector .

  1. Alexander, F. A. (1998). Vouchers in American education: Hard legal and policy lessons from higher education, Journal of Education Finance, 24(2): 153-178.
  2. Asian Development Bank (2012). Financing Asian Higher Education for Inclusive Growth; available at https://www.adb.org/sites/default/files/publication/29679/counting-cost.pdf (accessed on 7 September 2016).
  3. Azad, J. L. (1989). State grants: Pattern, procedure and policies, In Higher Education: The Institutional Context, A. Singh and G. D. Sharma (Eds.), Konark Publisher, New Delhi, pp. 324-339.
  4. Azad, J. L. (1999). Criteria based funding of higher education. Journal of Educational Planning and Administration, 13(4): 443-449.
  5. Babbidge, H. D. (1961). Financing higher education. National Tax Association, 54: 250-256.
  6. Barr, N. (2003).  Financing Higher Education: Comparing the Options, London School of Economics and Political Science, available at https://econ.lse.ac.uk/staff/nb/barr_HE_option030610.pdf (accessed on 7 September 2016).
  7. Beviá, C. & Iturbe-Ormaetxe, I. (2002). Redistribution and subsidies for higher education. The Scandinavian Journal of Economics, 104(2): 321-340.
  8. Birdsall, N. (1996). Public spending on higher education in developing countries: Too much or too little? Economics of Education Review, 15(4): 407-119.
  9. Bloch, B. W. & Hinshaw, C. E. (1997). A prepaid tuition plan for private higher education. Journal of Education Finance, 3(1): 101-106.
  10. Blum, V. C. (1958). Financing higher education. The Journal of Higher Education, 29(6): 309-316.
  11. Castells, M. (1993). The University System: Engine of Development in the New World Economy. In Ransom, A. et al (Eds.) Improving Higher Education in Developing Countries, World Bank, Washington, D.C.
  12. Daniere, A. (1972). The economics of higher education. The Annals of the American Academy of Political and Social Science, 404: 58-70.
  13. Davidson, C. (1955). Government Support of Private College and Universities, American Academy of Political Science and Social Science, 301:112-122.
  14. Editorial. (1962). Federal tax incentives for higher education. Harvard Law Review, 76(2), 369-387.
  15. Eicher, J (1990). The costs and financing of higher education in Europe. European Journal of Education, 33(1): 31-39.
  16. Fengliang, Li (2002). Financing higher education: Lessons from China. Irish Educational Studies, 31(2): 191-206.
  17. Green, R.T. (1962). The need for coordination and control in the financing of state institutions.  Proceedings of the Annual Conference on Taxation under the Auspices of the National Tax Association, 55: 476-482
  18. Hansen, W.L. (1983). Impact of student financial aid on access. Proceedings of the Academy of Political Science, 35(2): 84-96.
  19. Hansen, W.L. & Weisbrod, B.A (1969). The distribution of costs and direct benefits of public higher education: The case of California. The Journal of Human Resources, 4(2): 176-191.
  20. Harmon, D. B. (1931). Some trends in financing higher education. Social Science, 6(2): 97-109.
  21. Heim, P. (1976). Financing higher education: The challenge to state and local government, Proceedings of the Annual Conference on Taxation under the Auspices of the National Tax Association, 60: 130-138.
  22. Hill, Jr., W.W. (1962). State supported student loan programs. Proceedings of the Annual Conference on Taxation under the Auspices of the National Tax Association, 55: 493-497.
  23. Hollis, E. V. (1939). Recent trends in higher education, Phi  Delta Kappa International, 21(8): 385-387, 391.
  24. Jacobs, Bas & van Wijnbergen, Sweder J. G. (2007). Capital-market failure, adverse selection, and equity financing of higher education. FinanzArchiv / Public Finance Analysis, 63(1): 1-32.
  25. Jenny, H. H. (1975). Financing higher education. Journal of Education Finance, 1(1): 26-35.
  26. Johnstone, D. Bruce (2003). Cost sharing in higher education: Tuition, financial assistance, and accessibility in a comparative perspective. Sociologický Časopis / Czech Sociological Review, 39(3): 351-374. 
  27. Kane, J.T. (1990). Beyond tax relief: long-term challenges in financing higher education. National Tax Journal, 50(2): 335-349.
  28. Kaplan, N. (1960). Research overhead and the universities. American Association for the Advancement of Science, 132(3424): 400-404.
  29. King, R.B. (1951). Financing private colleges. Penn State University Press, 34(3):232-244.
  30. Kotey, N. (1992). Student loans in Ghana. Higher Education, 23(4): 451-459.
  31. Krueger, A.O. (1972). Optimal investment in college instruction: Equity and efficiency: Comment. Journal of Political Economy, 80(2): S31-S33.
  32. Levy,   D. (1982). Private versus public financing of higher education: U.S. policy in comparative perspective. Higher Education, 11(6): 607-628.
  33. Maclure, S. (1967). Financing of students: Grants or loans? The British Medical Journal, 1(5533): 166-167.
  34. Mathew, E.T. (1996). Financial aspects of privatisation of higher education: Issues and options, Economic and Political Weekly, 31(4): 866-869.
  35. Meck, J.F. (1955). How much-and how-should students pay for higher education? The Annals of the American Academy of Political and Social Science, 301: 166-174.
  36. Merrett, S. (1967). Student finance in higher education. The Economic Journal, 77(306): 288-302.
  37. Millet, J.D. (1955). Recent developments in financing higher education. The Annals of The American Academy of Political And Social Science, 305: 205-210.
  38. Mridula (1985). State Funding of Universities: A Study of Maintenance Grants to Universities. Association of Indian Universities, New Delhi.
  39. Mulugetta, Y, Saleh, D. A & Mulugetta, A. (1997). Student aid issues at private institutions. New Directions for Institutional Research, 95:43-64.
  40. Musgrave, R. A. (1960). Higher education and the federal budget. The Review of Economics and Statistics, 42(3): 96-101.
  41. NASBO. (2013). Improving Postsecondary Education through the Budget Process: Challenges & Opportunities, National Association of State Budget Officers, available at http://www.ncci-cu.org/downloads/improving.pdf (accessed on 7 September 2016).
  42. Nwacukwu, C. (1977).  Issues and problems of financing education in Nigeria. The Journal of Negro Education, 46(3):  219-229.
  43. Orr, P. G. & Peseau, B. A. (1979). Formula funding is not the problem in teacher education. Peabody Journal of Education, 57(1): 61-71.
  44. Psacharopoulos, G. (2008). Funding universities for efficiency and equity: Research findings versus petty politics. Education Economics, 16(3): 245-260.
  45. Russell, J. D. (1960). Financing higher education in the sixties. The Phi Delta Kappan, 42(1): 8-11.
  46. Sack, S. (1961). A nineteenth-century scheme for financing higher education in Pennsylvania. History of Education Quarterly, 1(3): 50-54.
  47. Schultz, T. W. (1968). Resources for higher education: An economist's view. Journal of Political Economy, 76(3): 327-347.
  48. Sharma, G. D. & Qamar, F. (1990). Efficient utilization of resources in higher education. Journal of Education and Social Change, 4(3).
  49. Sliger, B. F. & Beard, T. R. (1962). State Support of Public Higher Education, Proceedings of the Annual Conference on Taxation under the Auspices of the National Tax Association, 55: 464-476.
  50. Soper, W. W (1947). Educational costs and their analysis. American Educational Research Association, 17(2): 155-162.
  51. Stewart, E. T. (1957). Individual giving to higher education. Phi Delta Kappa International, 38(5): 191-194.
  52. Storm, R. & Feiock, R. C. (1999). Economic development consequences of state support for higher education. State & Local Government Review, 31(2): 97-105.
  53. Thompson, D. E. (1961). Corporate giving: A partial answer to the financial needs of higher education. American Association of University Professors, 47(4): 321-324.
  54. Tilak, J. B. G. (2003). Higher education and development in Asia. Journal of Educational Planning and Administration, 17(2): 151-173.
  55. Tilak, J. B. G. (2005). Are we marching towards laissez-faireism in higher education development? Journal of International Cooperation in Education, 8(1): 153 – 165.
  56. Tilak, J. B. G. & Rani, G. (2003). Changing pattern of university finances in India. Journal of Services Research, 2(2): 5-46.
  57. Trent, W. J. (1955). Cooperative fund raising for higher education. Journal of Negro Education, 24(1): 6-15.
  58. Tweeten, L. (1972). Equity implications of state tuition policy and student loans: Comment. Journal of Political Economy, 80(3): S175-S177.
  59. Varghese, N. V. (2015). Challenges of Massification of Higher Education in India, CPRHE Research Papers 1, CPRHE, NUEPA, New Dehli.
  60. Wigger, B. (2001). Higher education financing and income redistribution, FinanzArchiv/ Public Finance Analysis, 58(1): 48-59.
  61. Woodhall, M. (1992). Student loans in developing countries: Feasibility, experience and prospects for reform. Higher Education, 23(4): 347-356.
Abstract Views: 218
PDF Views: 76

Advanced Search

News/Events

PDEU: 8th Biennial I...

ABOUT THE CONFERENCE The objective of ICEIM 2022 is to present a sc...

International Resear...

ABOUT THE CONFERENCE Mimansa Research Conference endeavours to presen...

2nd International E-...

ABOUT THE CONFERENCE In the era of digitalization, the world has sh...

3rd International Co...

About the Conference At the outset, the multifarious Covid-19 pande...

International Confer...

ABOUT THE INTERNATIONAL CONFERENCE Today, the world of business is ...

Call for Reviewers

In keeping with JPI’s policy of commitment to high standards of ...

Call for papers

JPI invites original and unpublished manuscripts in the areas of comme...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.