Pak. J. Statist.

2014 Vol. 30(5), 897-910

REGRESSION ANALYSIS FOR SINO - FOREIGN COOPERATION
IN RUNNING SCHOOL OF HIGHER EDUCATION BASED ON IV
Ming-Xia L
Shanghai University, Shanghai, 200444, China
Email: wendy@staff.shu.edu.cn
ABSTRACT
Instrumental variable (IV) analysis is not only able to contribute to causal inference,
but also able to carry out the comparative analysis of instrumental variables estimation
and least squares estimation, which makes us profoundly understanding and recognizing
the social mechanisms and processes. To analyze social science, instrumental variable
plays an important role in solving endophytism problem. It is foremost method to deduce
cause and effect based on investigate data. In this paper, after introducing principle and
calculate for the tackle variable, we discussed its potential and limitation. While
expounding weight feature of estimate in instrumental variable, we explained and
compared differences among instrumental variables with an example of transnational
higher education, then took apart the affect mechanism of instrumental variable during
the evolution of transnational higher education. For humanistic understanding of the
situation and respect is the base of Sino-foreign cooperation in running schools, and it
required cultural exchange between two or more countries. We inevitably exposed to
different situations in these countries humanities. Therefore, differences of national
humanities reasonable measure and describe for Sino-foreign cooperation in running
schools is very necessary. We summarized several currently affecting large international
humanities indicators, analysis humanities degree of influence on the difference of Sinoforeign cooperation in running schools by using regression method.
KEYWORDS
Instrumental variable; Transnational higher education; Endophytism; Regression
analysis.
AMS Subject Classification: 62G68
1. INTRODUCTION
Sino-foreign cooperation in education has become an important part in our
educational system from the edge of higher education since 1980s. After three stages, the
policies of Chinese foreign cooperation in educational are more and more complete and
legitimacy. The related policies have achieved great development, but there are also some
deviation phenomenon when they execute these policies. Overall, they are still weak
now. According to the background, WU Jian, YANG Jing and ZHONG Yu-zhou (2010)
analyzed the policies of Sino-foreign cooperation in education, the development and the
implementation of policies, and put forward several policy recommendations. Xu Anguo
2014 Pakistan Journal of Statistics

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Regression Analysis for Sino - Foreign Cooperation

(2012) mentioned teachers competency character model has four dimensions: planning
and preparation, environmental monitoring, teaching and teacher professional
responsibility.
Recently, Sino-foreign cooperation in running schools in China is undergoing rapid
development and becomes an effective way to introduce high quality education resources.
However, it still has some problems in the school scale, partners and professional aspects
in colleges and universities of the western region. Tan Ping and Gong Wei (2014) argues
further implement and improve policies and measures from the macro to micro levels, to
promote the balanced and long-term development of Sino-foreign cooperation in running
schools in western region.
Instrumental variable method owns a unique advantage in the quantitative analysis of
survey data. However, the position when it is applied in sociological analysis envies the
prominence when it is applied in econometric analysis (The use of instrumental variable
method in econometric studies refers to (Sovey & Green, 2011)). Many research topics in
analysis of the education system, as well as many areas across the social sciences, are
difficult to use experimental methods. Other methods forced to use also have their own
limitations. For example, Fixed effects model can only eliminate the time constant
interference terms, while Propensity Score Matching method is entirely dependent on the
observable factors were ignored hypothesis. Qingren He, Bin Dan, Ru Liu (2014)
shown that the optimal lateral transshipment control policy is a threshold type.
Furthermore, based on the structural properties of the thresholds, the corresponding
algorithm has been proposed as well. Instrumental variable inadvertently become Holy
Grail in causal inference quantitative analysis? The reason is because a good
instrumental variable is difficult to be found, and the process is full of hardships in search
of its data mining, inspiration of researchers becomes one of the essential elements. The
simplicity in the model of Instrumental variable, which requires imagination and
interpretation of social sciences, not only provides an important weapon of causal
inference for quantitative analysis, but also sketches out unimaginable whimsy for future.
Card (Card, 1995) presents a different educational output caused by exogenous source
when research the regular relationship between school education and income. He used the
distance from the university as an exogenous determinant of education, by using the
National Longitudinal Survey of Young Men (NLSYM) data, statistical analysis showed
that, in the local labor market of people who grew up near the university than others with
a significantly higher level of education and income. The marginal return of children with
their low educational attainment of parents is as high as that estimated by conventional
methods or higher. The additional instrumental variables estimates (10-14%) with
increasing annual education income was significantly higher than that of conventional
method by least squares estimates (7.3%). These inferences are robust under the specific
small changes. When the distance from the university is the exogenous determinants, the
instrumental variable of returns on education is 25-60% higher than that of conventional
method by least squares estimates. It should be noted that, above analysis by Card
assumes that living near the university affects income only through education. To test this
hypothesis, Card used the fact that living near the university have a greater impact on the
family with a low level education backgrounds when they choose school. Thus, the
interaction term between close to the university and the low level of education

Ming-Xia L

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background can be used as the instrumental variable of observed schools, even can be
used as the instrumental variable of income model included Close to University affect.
This model is basically as same as a simple economic model with endogenous education.
In the study of institutional analysis, Hall and Jones (Hall & Jones, 1999) are very
imaginatively used distance between countries and the Equator as an Instrumental variable.
The Reason is, the distance from the equator roughly reflect to that extent the countries
affected by the Western system, and this is clearly exogenous. In addition, except the urban
distance, the concrete social space factors, market is the space of socio-economic activities,
the elements are often closely related to the phenomenon of sociologists interest, but do not
directly interfere with the individual's specific social characteristics.
In this paper, we try to take apart the potentiality and boundedness for the
instrumental variable method, meanwhile, by combining practice case in Chinese higher
education, we bring forth, in some key points, how to use instrumental variable in the
aspect of inference.
2. PRINCIPLE AND APPLICATION OF INSTRUMENTAL VARIABLE
There is a very hot research topic in Sociology called peer effect. The hypothesis is
that the characteristic elements of the social group where individuals belongs tends to
affect to what extend Society admit. Of course, this hypothesis must be verified, hence,
we encountered the problem that endogeneity caused by individual heterogeneity. It is
quite reasonable that many individual factors that cannot be observed simultaneously
correlates with the social group elements we observed. To solve this problem, social
scientists often use aggregation data of state and provincial level as an instrumental
variable. At 1991, Kruger et al. (Krueger, 1991) first took the quarter respondents were
born as instrumental variable when researched educational returns. Another typical
example is Bentolila et al. (bentolila, 2010) use federal employment rate as instrumental
variable to analyze the effect that "Using social relations" have on personal income, and
they obtained satisfactory conclusion.
Statistics show that GDP per capita among countries is quite different. Different
physical capital and education level can only partly explain the differences in GDP per
capita, more explanatory variables is under exploring. Taking education system analysis
as example, Hall and Jones (1999) selected the distances from countries to equator as
instrumental variable, which is based on economic theory that social infrastructure is
endogenous, historically decided by the location and other part decided by language
factor. Prolonged high levels of a country's GDP per capita reached due to their high
level of physical capital and human capital. Halls study implies the following
hypothesis:
Hypothesis 1: Differences in GDP per capita in different countries are positive
correlated with the differences of social infrastructure.
Hypothesis 2: Different physical capital and education level can only partly explain
the differences in GDP per capita.
Hypothesis 3: Different countries have different levels of social infrastructure has
been positively related to the extent that they influenced by Western Europe.

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Regression Analysis for Sino - Foreign Cooperation

The principle of Instrumental variable was firstly proposed by Philip Wright (in the
late 1920s (Stock & Trebbi, 2003). Below is a brief introduction and models deduction.
For a typical linear regression model:

yi 0 1 xi ui , i 1, 2,..., n

(2.1)

yi is a dependent variable, xi is the independent variable, or explanatory

variables, ui is the error term. Usually statistics always assume xi and ui are irrelevant,
we can use the OLS to unbiased estimation. In fact, this assumption is not valid. If the xi
and ui is relevant, then the OLS method is biased. The reasons that cause explanatory
where

variables and the error term relevant are diverse, usually there are measurement errors or
omissions variables. At this point, xi is called endogenous explanatory variable, which
is the famous endogenous problem.
To solve those endogenous problems with instrumental variable dependent on
introducing an exogenesis variable Z i , where Z i must be satisfied with the following
two conditions: Z i and

ui are relevant, while Z i and xi are irrelevant, that is,

Cov Zi , xi 0, Cov Zi , ui 0

(2.2)

From equation (2.1) we can derivate out

Cov Zi , yi 1Cov Zi , xi Cov Zi , ui .

According to the conditions (2.2), we obtain Cov Zi , yi 1Cov Zi , xi , That is,

1 Cov Zi , yi Cov Zi , xi
Therefore, it is easy to estimate parameter 1 without unbiased.

mj 1 Zij Zi yij yi
mj 1

Zij Zi

xij xi

, i 1, 2,

(2.3)

where 1 is the estimation of instrumental variable.

The common estimate approach with instrumental variable is two-stage least-squares,
it can be calculated by two stages
First stage, to divide endogenous variable

xi into two parts, one of them vi is relent

to error, the other Z i is relent to xi :

xi 0 1Zi vi , i 1,2, n

(2.4)

Equation (2.4) can be regressed by the method of ordinary least square, then we
obtained predict value xi 0 1Z i , where 0 and 1 are estimations.

Ming-Xia L
Second stage, set up a regression equation about

901

yi and xi . From the regression

equation one can get the estimation belong to two-stage ordinary least-squares.
When put a variables Z into the model, actually it increases effective information for
model identification, but also brings noise. One of the important problems is, we do not
know the feature of relationship between the instrumental variables and explanatory
variables, especially the correlation between tool and explanatory variables because we
cant figure out the distribution of them in the sample. If the distribution of the tool
variables affecting population is not uniform, the instrumental variable estimators should
reflect more of the causal effect on the part of the sample. This can lead to a very
important dialog, the so called local average treatment effect.(ImbensAngrist,1994;
Angrist, 1996) . Groups tend to have intrinsic differences inside on the sociological and
make the problem so important. This difference often causes the inconsistent pace the
sample responses to exogenous shocks. Thus, instrumental variable estimation in many
cases was weighted average of many local sample estimators. By understanding this kind
of weight characteristics, we can carry out better and reasonable sociological explanation
of analysis used the instrumental variables based on pure technical statistics. Generally
we look for possible instrumental variables from the survey data. Because imagined an
instrumental variables is very difficult. Using the reverse thinking, check and associate
from the series of variables provided from data we may find the tools available variables.
In this section, we illuminate the principle of instrumental variable by means of a
case. All of data come from the network of the Peoples Republic of China Ministry of
education and foreign regulatory information in 2012 (http://www.jsj.edu.cn/index.
php/default/index). We try to analyze with instrumental variable by used of these data.
First at all, we set up a nonlinear regression model, in which explanatory variable x
express culture conception value in various regions in China, then explained variable y
express the logarithm value of Chinese-Foreign cooperation of school running in various
regions in China. Due to there is no item of Chinese-Foreign cooperation of school
running in Tibet and other three provinces, hence we choose log 1 yi as explained
variable. Without generality, we consider one element nonlinear regression model. After
comparing their goodness of fit, we take the following nonlinear regression model.

log 1 yi c1 c2 xi ui
Table 1
Regression Results of Model (2.5)
Coefficient
Std.Error
t-Statistic
C(1)
-0.695907
0.344359
-2.020876
C(2)
2.406276
0.479178
5.021676
R-squared
0.465115
Mean dependent var
Adjusted R-squared
0.446670
S.D. dependent var
S.E. of regression
0.442089
Akaike info criterion
Sum Squared resid
5.667832
Schwarz criterion
Log likelihood
-17.64980
Hannan-Quinn criter.
F-Statistic
25.21732
Dubin-Watson Stat.

(2.5)

Prob
0.0526
0.0000
0.986756
0.594316
1.267729
1.360244
1.297887
0.736632

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Regression Analysis for Sino - Foreign Cooperation

Instrumental variable methods are commonly used in accounting research (e.g.,

earnings management, corporate governance, executive compensation, and disclosure
research) when the regressor variables are endogenous. While instrumental variable
estimation is the standard textbook solution to mitigating endogeneity problems, the
appropriateness of Instrumental variable methods in typical accounting research settings
is not obvious. However, if we bring to bear reversal thought, and examine a series of
variables provided by data, it is possible to obtain some useful instrumental variables.
Therefore, we consider insert seaside dummy variable as a new explanatory variable.
Di=1 stand for seaside province, while Di=0 stand for province off sea. From regression
results, one can find that seaside provinces have lost their advantage in Sino-foreign
cooperation of school running during the early days of reform and openness.

log 1 yi c1 c2 xi Di ui
Table 2
Regression Results of Model (2.6)
Coefficient
Std.Error
t-Statistic
C(1)
-0.830957
0.389061
-2.135799
C(2)
2.686808
0.605809
4.435075
C(3)
-0.157895
0.206092
-0.766139
R-squared
0.476097
Mean dependent var
Adjusted R-squared
0.438676
S.D. dependent var
S.E. of regression
0.445271
Akaike info criterion
Sum Squared resid
5.551456
Schwarz criterion
Log likelihood
-17.32823
Hannan-Quinn criter.
F-Statistic
12.72252
Dubin-Watson Stat.

(2.6)

Prob
0.0416
0.0001
0.4500
0.986756
0.594316
1.311498
1.450271
1.356735
0.753101

China try to build a shipment of the high-level universities, these universities not only
learn from good experience abroad but also inherit and absorb the best of Chinese
traditions. Because high-level university may showed assemble effect for other ones, it is
this kind of effect that may attract foreign universities have motivation to cooperate with
us. For this reason, we select such an instrumental variable, which stands for the number
of 211 Project Universities in that province either more than one or not. Such
instrumental variable were inserted in model (2.5), you can obtain regression model (2.7).
Regression results have conformed our judge. (see table 3).

log 1 yi c1 c2 xi c3 Di ui

(2.7)

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903

Table 3
Regression Results of Model (2.7)
Coefficient Std.Error t-Statistic
C(1)
-0.469632
0.324046
-1.449245
C(2)
1.779416
0.494396
3.599169
C(3)
0.438271
0.163932
2.673495
R-squared
0.573888
Mean dependent var
Adjusted R-squared
0.543452
S.D. dependent var
S.E. of regression
0.401570
Akaike info criterion
Sum Squared resid
4.515228
Schwarz criterion
Log likelihood
-14.12586
Hannan-Quinn criter.
F-Statistic
18.85524
Dubin-Watson Stat.

Prob
0.1584
0.0012
0.0124
0.986756
0.594316
1.104894
1.243667
1.150130
1.151527

From the living example of instrumental variable, one may be enlightened to obtain a
corollary: it is too narrow to consider the tackle variable analysis as a tool for reason
deducing cause and effect. There always are lots of differences between east and west,
because of the different culture background. The estimation from instrumental variable,
with which we can compare and analysis, may help us deeply comprehend the influence
from culture difference.
3. NONLINEAR REGRESSION
3.1 Regression of Geographic differences
Geographical differences is closely related to cross-cultural. Its another important
issue which is the process of Sino-foreign cooperation in running schools facing. We
found that the geographic attributes have quietly weakened by statistics. To demonstrate
this proposition, We study the correlation between the score of cultural values of each
region caused by the geographical factors and number of Sino-foreign cooperation in
Running schools. For simplicity, the country is divided into two parts coastal and inland
areas. We denoted the number of Sino-foreign cooperation in running schools (Master
and PhD project) in various regions at the end of 2012 for y. Taking into account the four
provinces, including Tibet, no Sino-foreign cooperative education program, therefore, we
selected 1+ y is explained variables in the regression equation. Explanatory variable x is
the scores of cultural values of each region which taken from Table 1 and Table 2. In this
section, we choose the score of regional cultural value as explanatory variables in Sinoforeign cooperation in running Schools. For simplicity, we convert the original order
according to [0,1] represents the index through a simple linear transformation.
According to the correlation coefficient calculation and results in Table 4, we get:

where

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Regression Analysis for Sino - Foreign Cooperation

Clearly showing a weak correlation between the two variables.

Significant test as follows: assuming a significant correlation between the pure in both
score and number of items, we can do a linear regression, and use the F statistic to test its
relevance. Consider the following hypothesis:
H0: The overall regression coefficient is zero;
H1: The overall regression coefficient isnt zero.

Due to F0.05(1, 9)=5.12, and F< F0.05(1, 9), therefore, we accept H0, it means that it
isnt a significant correlation between in both score and number of items
In the same way, regression analysis of the inland provinces tell us the same
conclusion. According to the above statistical tests, cross-cultural attributes on Sinoforeign cooperation in running schools, we get the following conclusions:
Firstly, it is necessary to find common ground for cooperation. We must stand at the
forefront of the convergence of Western culture, with a high degree of cross-cultural
understanding and a keen ability to cross-cultural critique, endeavor increasing the
awareness of different cultures and the accumulation, facing cultural conflict in a
progressive and open way. As a Sino-foreign cooperative education teaching subject,
teachers should strive to absorb the essence of various cultures and nutrients, improve the
ability to appreciate different cultures with calm tolerant attitude and entrepreneurial
spirit, which is a prelude to develop a reasonable cross-cultural awareness and
intercultural education hearts counseling. As a Sino-foreign cooperative education
teaching object, Students should improve their sensitivity to cultural differences, and
enhance cross-cultural communication consciousness in the learning process. Only to
maximize the potential tension between dependence and independence Sino-foreign
educational cooperation, we can better carry out Sino-foreign cooperation in running
schools teaching practice
Secondly, it is necessary to break the shackles of expansion force. A trend in the
course of Sino-foreign cooperative education has been formed that is geographically
property has been weakened, which means that the geographical advantage of our coastal
economy and culture has ceased to exist, where is the shackles that restrict the
development of Sino-foreign cooperative education. The researchers study this problem
require not only education, but also need to draw crossover studies in economics, culture,
history and statistics and other disciplines. Excellence theory of Sino-foreign cooperative
education is a sword to break the shackles of ideological conformism, constantly selfexperience and accumulation can effectively enrich the educational experience.
Cooperative education institutions should guide educators to deal with nationality and
history relations in the Sino-foreign exchange activities of cooperative education, to
achieve local original research of Sino-foreign cooperative education. Sino-foreign
cooperative education is an important part of Chinese education. We should further raise
awareness, clear positioning, to introduce Sino-foreign outstanding educational resources
substantially.

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905

3.2 Regression of Humanities differences

Driven by economic globalization, China has become increasingly evident trend of
internationalization of higher education. Especially after China's accession to WTO,
Higher education institutions and Sino-foreign cooperation projects in China increased
steadily. Sino-foreign Cooperation in running schools began in the 1980s, developed in
the 1990s. Up to April 2013, Sino-foreign cooperative education institutions and projects
has reached 44 and 793 implemented undergraduate academic education which approved
by the ministry of education as required. Compared to 2011 increased by 18.8% and
41.6%
In this process, Sino-foreign cooperation in running schools showed a series of
contradictions such as market and public welfare, quantity and quality, scale and
efficiency. Because of these, Sino-foreign cooperative education requires continuous
improvement, both has their own unique concept, and must have effective absorption of
Sino-foreign educational resources. The only way is to show a strong vitality and a bright
future.
Table 4
Sino-foreign cooperation projects and score of cultural values in China
Region Item Score Region Item Score Region Item Score Region Item Score
Beijing 78 1.000 Hunan 10 0.485 Jiangsu 67 0.780 Shandong 52 0.555
Tianjing 28 0.855 Gansu 1 0.830 Zhejiang 31 0.810 Guangdong 19 0.830
Hebei
9 0.425 Guangxi 3 0.620 Anhui
4 0.540 Chongqing 7 0.715
shanxi
2 0.475 Yunnan 7 0.325 Fujian 11 0.630 Ningxia
0 0.325
Neimeng 7 0.510 Hainan 1 0.620 Jiangxi 17 0.370 Xinjiang
0 0.620
Liaoning 30 0.660 Qinghai 0 0.620 Shaanxi 7 0.485
Tibet
0 0.715
Jilin
23 0.390 Guizhou 2 0.250 Henan 62 0.410 Helongjiang 171 0.250
Shanghai 96 0.945 Sichuan 14 0.470 Hubei 34 0.515
Resource: According to the Ministry of education Webpage finishing
Table 4 denoted the number of Sino-foreign cooperation in running schools (Master
and PhD project) in various regions at April 2013 for y. Taking into account the four
provinces had no Sino-foreign cooperative education program, therefore, we selected 1+y
is explained variables in the regression equation. Explanatory variable x is the scores of
cultural values of each region which taken from Table 4. In this section, we choose the
score of regional cultural value as explanatory variables in Sino-foreign cooperation in
running schools. Taking into account the non-linear regression(3.8) we build containing
squared term, we convert the original order according to [0,1] represents the index
through a simple linear transformation.

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Regression Analysis for Sino - Foreign Cooperation

Table 5
Distribution of 211 Project in China
Region

Number

Region

Number

Region

Beijing
25
Jiangsu
11
Shanghai
Guangdong
4
Liaoning
4
Tianjing
Shaanxi
7
Hubei
7
Sichuan
Shandong
3
Jilin
3
Helongjiang
Fujian
2
Xinjiang
2
Resource: According to the Ministry of education Webpage finishing

Number
9
3
5
4

211 Project is key construction of the 100 universities and a number of key
disciplines professional by Chinese government (see table 5, provinces which are not
listed are only a 211 school). Over two decades of a large number of regional government
investment, now higher education in 211 Project have greatly improved in many
aspects such as quality of education, scientific research, management and operating
efficiency, especially in education reform. Part of colleges and universities and
disciplines, professional approach or reach world-class levels of university construction
projects. Therefore, the influence of Sino-foreign joint school projects in this region
related with the distribution of regional 211 Project should not be underestimated. That
is why we select the regional distribution of 211 higher education as a tool for variable.
D1i representative dummies which presents the number of 211 higher education in such
Province.
Table 7
Distribution of Sino-foreign cooperative education institution
Sino- HK & Macao
SinoHK & Macao
Region
Total
Region
foreign
Taiwan
foreign
Taiwan
Beijing
5
0
5
Hubei
1
0
Tianjing
1
0
1
Guangdong
2
1
Shanghai
9
0
9
Liaoning
7
0
Chongqing
1
2
3
Hebei
1
0
Shanxi
2
0
2
Jiling
2
0
Jiangsu
4
0
4
Zejing
1
0
Shandong
3
0
3
Henen
1
1
Resourcehttp://www.jsj.edu.cn/index.php (As of 2013 April)

Total
1
3
7
1
2
1
2

A Sino-foreign cooperative education institution in the region can effectively

accelerate the process of introduction, learning, using and radiation intensity of Sinoforeign high-quality education resources, and strengthen process management, improve
the educational level, enhance the international competitiveness of regional education.
Educational institutions which further promote construction of connotation in Sinoforeign cooperation in running schools, explicit positioning and cooperative education
goals, and truly enhance the quality of Chinese education and school capacity have an
irreplaceable and important role. Therefore, it is reasonable to select the number of Sinoforeign cooperative education institution each region as instrumental variables.

Ming-Xia L

907

D2i representative dummies which presents the number of Sino-foreign cooperative

education institution in such province (D2i=0 means that has no Sino-foreign cooperative
education institution in province i; D2i=1 means at least that has one and more Sinoforeign cooperative education institution in province i.) (the provinces are not listed in
table 7&8 have no cooperative educational institution of higher education)
Establish the following non-linear regression equation:

ln(1 yi ) 1 xi 2 xi2 3 D1i 4 D2i i

(3.1)

where D1i and D2i are instrumental variables, D1i represents the number of 211 higher
education in the province i, and D2i represents the number of Sino-foreign cooperative
education institution in the province i. Substituting data in Table 5, Table 6 and Table 7.
Using Eview to regress, results are shown as follows (see Table 8):

ln(1 yi ) 2.3508 6.3553xi 4.8188xi2 0.5151D1i 0.6340D2i (3.2)

C(1)
C(2)
C(3)
C(4)
C(5)
R-squared
Adjusted R-squared
S.E. of Regression
Sum Squared Resid
Log likelihood
F-Statistic

Table 8
Results of nonlinear regression
Coefficient
Std.Error
t-Statistic
2.350843
0.650174
3.615715
-6.355275
2.256146
-2.816873
4.818844
1.837741
2.622156
0.515100
0.165982
3.103357
0.633973
0.175512
3.612135
0.606014
Mean dependent var
0.545401
S.D. dependent var
0.431263
Akaike info criterion
4.835680
Schwarz criterion
-15.18863
Hannan-Quinn criter.
9.998066
Dubin-Watson Sta

Prob
0.0013
0.0091
0.0144
0.0046
0.0013
1.038126
0.639629
1.302492
1.533780
1.337886
1.326195

From the results in Table 6, it can be seen F=9.99. Look up table, we have
F(2, 28)=8.84, obviously F> F(2, 28), F test passed, nonlinear regression equation (3.1)
have significant, and t test passed, each explanatory variable nonlinear regression
equations has independent explanation ability. In addition, R-squared = 0.606, goodness
of fit reached 0.606, its matching effect is preferable.
Based on the regression equation(3.2),we can draw the following conclusions:
i) Since = -6.355 <0, and the scores of cultural values of inland provinces close to
1

zero, the linear part of regression equation (3.2) has a primary force of
explanation. This shows that the scores of cultural values of inland provinces
negatively correlated with the number of Sino-foreign cooperative education
program. The key point is the increase in the number of 211 higher education.
That is working hard in school quality in higher education.
ii) Since 2 =4.819>0, and the scores of cultural values of coastal provinces close to
one, the slope of regression equation (3.2) is greater than zero, but significantly

908

Regression Analysis for Sino - Foreign Cooperation

smaller. This shows that the educational resources of the coastal provinces close
to saturation. The future direction of Sino-foreign cooperation in running schools
is to ensure the quality and enhance the comprehensive strength.
iii) Since =0.515>0, This shows that the number of 211 higher education is
3

important tool for variable. 211 Project which has been the largest national key
construction projects undertaken officially in the field of higher education since
the foundation of the state is a system reform project of higher education. The
result of regression equation (3.2) shows the region which has more than one 211
higher education has a significant advantage in the Sino-foreign cooperative
education program and also is more attractive to Sino-foreign high quality
education resources.
iv) Since 4 =0.634>0, This shows that, as school entities, Sino-foreign cooperative
education institutions plays a significant role in improving the number of regional
Sino-foreign cooperation in running schools. It effectively improve the capacity of
educational institutions normally uptake and utilize overseas high-quality
educational resources.
Residents of countries on human values have a tendency. These differences in the
humanities dont assimilate because of globalization, they still show their properties, and
will always be so. They led the different residents of countries behave in different way,
which would constitute a barrier to interpersonal communication. It is necessary to take
into consideration of the humanities differences when have Sino-foreign cooperative
education negotiations. Humanistic values are something in common of states residents
awareness which is deposited by history. We should consider material civilization and
spiritual civilization such as economic development, geographical distance and
educational advancement of countries, if analyzing the status of human development in
different countries deeply.
4. CONCLUSIONS
Transnational higher education, one of the most prominent features of international
higher education, has become a popular practice in the era of economic globalization.
With the rapid development of the global economy, todays businesses or countries in
order to have a relatively long-term competitiveness must be constantly learning, active
learning, effective learning. Xiang Kaibiao and Xian Heng (2013) considered that the
better way for higher education institutions in the midst of an environment is to maintain
a sustainable living and healthy and harmonious development.
Recently, various countries have adopted it a basic policy, opening the market of their
higher education and enhancing the international communications in programs and other
academic exchanges. China is becoming one of the most potential fascinating
transnational higher education markets on the world. At the moment, various kinds of
problems, both theoretical and practical, are presented before us. About ten years ago,
America Annual Review of Sociology published specially a summary about
application of instrumental variable in the field of society (Bollen, 2012). From viewpoint
of technology, the report has reviewed explicitly lots of papers published in three
America famous journals (American Sociological Review, American Journal of

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909

Sociology, and Social Forces) during 2000 and 2009. At the moment, instrumental
variable has been adopted in the extent of sociology step by step. It is sufficient to
explain that quantitative method in the society has made a great progress and has merged
advance approach in the other subjects together. Card (1995) select the distance between
the nearest University and home of students, with which Card try to analyze whether the
education can improve the income and position or not. However, it is obviously that this
kind of distance has not direct relationship with individual in the society and economics,
although it can be considered as one of essential factor in the city space. Of cause, the
distance in the geography space can only impact slightly somebody go to school.
Supporter of society space, which including city and countryside, as well as market
space, vitally interrelated with behavior of human being and result of society, however it
often showed its independency and randomness in the special analysis surface. All of
these kinds of instrumental variable analysis cases will appear in the report of education
return. Guifu CHEN (2009) examined economic returns to schooling in urban China
using ordinary least square (OLS) and instrumental variable methodologies, and found
that estimates with instrumental variable methodology for women are higher than those
for men, and this difference increases after correcting for selectivity biases. Another
example is research on the associations between area-level/contextual social capital and
health has produced conflicting evidence. However, interpreting this rapidly growing
literature is difficult because estimates using conventional regression are prone to major
sources of bias including residual confounding and reverse causation. Instrumental
variable analysis can reduce such bias.
ACKNOWLEDGMENT
This research was supported by National Natural Science Foundation of China under
Grant No. 71171128.
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