In the past few decades, the issue of marketization of higher education has attracted more and more attention from the academic and policy-makers. Human capital, market efficiency and the quality of higher education are central to the literature on this issue. Public education is important for the realization of equity and traditional values and it is also crucial for supporting opportunities of social mobility. However, it is commonly agreed that market is a more competitive place than public institutions and since a public school have the advantage of becoming a local monopoly; therefore, the demands of its customers are often ignored.
Taiwan has put a lot of attention on higher education after World War Ⅱ and its higher education has long been closely linked to economic and social development. Its government emphasized on higher education was often cited as one of the main reasons underpinning their economic dynamism and it was also part of the contribution ties in popular perceptions that higher education is a prime channel of social mobility. Nevertheless, governments may have wasted precious resources while they were providing public services and free market, competition and property rights may be the solutions to this problem.
According to the views mentioned above, we need not only to concern about the advantages of marketization of higher education, but also concern about the weaknesses of this process. Hence, this thesis desires to throw attention onto these aspects. Firstly, discuss the advantages and shortages of marketization of higher education. Secondly, discuss the situation of marketization of higher education in Taiwan. Lastly, to propose certain policy suggestions based on this thesis.

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