Higher education as a factor of socio-economic performance and development (original) (raw)
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This paper sheds light on the role of tertiary or higher education in economic development across two successful (OECD) case studies; Finland and South Korea. A number of key aspects are discussed, from the nature of the social contract between (higher) education and the economy to the endogenous characteristics of domestic higher education to the links between the sector and regional development, innovation, and the labour market. The lessons learned are of importance to policy makers and institutional planners across the world, not least to less developing nations and regions, due to the unprecedented opportunities brought by a global, knowledge-based economy.
Higher education institutions, economic growth and GDP per capita in European Union countries
European Planning Studies, 2018
This paper presents an estimation of the contribution of Higher Education Institutions (HEIs) to economic growth and the Gross Domestic Product per capita of the European (EU) countries over the period 2000-2015. For this purpose, we analyse the universities' effects on the supply side of their national economies, especially the contribution of the R&D of HEIs to technological capital of the European (EU) countries. We proposed a methodology of counterfactual scenarios, which assume a hypothetical situation in which HEIs do not exist, to estimating the effects of HEIs, applying techniques of growth accounting. The results obtained indicate that these effects are a significant source of growth in European (EU) countries, contributing to mitigating the adverse effects of the periods of crisis. The estimates show that GDP per capita would currently be more than 11% higher than that corresponding to a scenario without HEIs. The results obtained also show significate differences in GDP per capita between European (EU) countries associated with the activity of HEIs.
Equilibrium, 2013
The main aim of this paper is to present the results of comparative analysis of higher education effectiveness in the European Union countries in the context of technology adoption and knowledge development. The first part of the paper describes the notion of national competitiveness, the determinants of its improving and methods of its measuring. Enhancing national competitiveness is in fact one of the objectives of higher education in the welfare economies, or should be in the countries that want to become such. That is why our attempt to verify the higher education effectiveness is taken from the perspective of performance, such as competitiveness. Furthermore, the welfare economy will be very difficult to achieve without a well-educated and trained workforce that is able to absorb new knowledge in order to introduce innovations to market. Today's educational systems should thus provide the so-called knowledge workers who endowed with the relevant knowledge resources can apply them in practice. These workers are a strong factor underpinning national competitiveness. The second part focuses on the comparison of higher education effectiveness in the 27 European Union countries on the basis of selected indicators presented in the World Economic Forum's annual Global Competitiveness Reports. Our study covers the five years period between 2008 and 2012 and is carried out to evaluate the effectiveness of higher education in European Union countries using indirect measures,
International Public Administration Review, 2014
In the last twenty years, higher education policies have become increasingly important national priorities in both the developed and the developing countries. According to the endogenous growth theory, higher education and thereby accumulation of human capital is considered to be the main driver of economic competitiveness in the growing global economy founded on knowledge. Thus, as education is undoubtedly one of the main drivers of economic growth and development, an increase in the real expenditures for education is found in many countries. All this is especially evident in times of rapid technological changes. The interest of this paper is to show the relationship between GDP and public spending on education by applying the method of panel data analysis on the selected EU Member States and former Soviet Union Countries for the period 2000 – 2011. The results of the analysis showed that public expenditure for education, as well the size of the tertiary educated workforce and the ...
A Global Perspective Analysis ; Contribution of Higher Education to Economic Progresss
Korea Review of International Studies , 2022
Education is generally recognized as a useful and effective tool for encouraging economic growth. But which level of education. i.e., primary, secondary, or higher, contributes the most to development? In the present era , ‘Higher education ’ results in the economic growth and its development is being prompted by knowledge-driven competitiveness in a globalizing economy. Previously, it was widely seen as a wasteful and ineffective government function that mostly favored the wealthy and powerful. It is now recognized as having a significant impact on the effectiveness of governmental efforts to improve economic growth, competitiveness, and productivity in conjunction with other variables. Policymakers have stressed the significance of basic and secondary education above ‘HE’ in the development process throughout the years. ‘Higher education’, on the other hand, supports efforts at other levels of education in national programmes to increase performance and innovation across economic sectors. Recent data demonstrates that education may be both a predictor and an outcome of income, with personal and public advantages. ‘Higher education’ has the potential to enhance investment, savings and tax revenue, resulting in a more enterprising and civic society. It will also lead to improved national health, lower population numbers, improved technologies, and stronger government. The study made in this research will discuss the importance of ‘Higher education’ towards the progress of our economy from macro- and microeconomic perspectives, as well as the monetary and non-monetary advantages that come with it.
The contribution of higher education to economic development in a globalized environment
2009
Amidst concerns about achieving high levels of technology to remain competitive in the global market without compromising economic development, national economies are experiencing a high demand for human capital. As higher education is assumed to be the main source of human capital, this analysis focused on a more specific and less explored area of the generally accepted idea that higher education contributes to economic growth. The purpose of this study, therefore, was to find whether higher education also contributes to economic development, and whether that contribution is more substantial in a globalized context. Consequently, a multiple linear regression analysis was conducted to support with statistical significance the answer to the research question: Does higher education contributes to economic development in the context of globalization? The information analyzed was obtained from historical data of 91 selected countries, and the period of time of the study was 10 years (1990-2000). Some variables, however, were lagged back 5, 10 or 15 years along a 15-year timeframe (1975-1990). The resulting comparative static model was based on the Cobb-Douglas production function and the Solow model to vi specify economic growth as a function of physical capital, labor, technology, and productivity. Then, formal education, economic development, and globalization were added to the equation. The findings of this study supported the assumption that the independent contribution of the changes in higher education completion and globalization to changes in economic growth is more substantial than the contribution of their interaction. The results also suggested that changes in higher and secondary education completion contribute much more to changes in economic growth in less developed countries than in their more developed counterparts. As a conclusion, based on the results of this study, I proposed the implementation of public policy in less developed countries to promote and expand adequate secondary and higher education systems with the purpose of helping in the achievement of economic development. I also recommended further research efforts on this topic to emphasize the contribution of education to the economy, mainly in less developed countries. vii
Higher education and economic competitiveness
2012
Higher education plays an increasingly critical role in the economic competitiveness of local, state, and national economies. The factors driving the World Economic Forum's Global Competitiveness Index are examined to illustrate how higher education has come to be viewed as a driver of economic growth. Then, by examining institutional economic development reports and national economic competitiveness plans, this chapter lays out the growing global interest and import of economic competitiveness and the ways in which governments are seeking to harness the power of higher education to support their own competitiveness. It concludes with a discussion of how governments, businesses, and higher education institutions could collaborate to develop public agendas to guide, among other things, the economic contributions of colleges and universities.
Economic Analysis
The relationship between tertiary education and economic growth of the EU countries in the period 2000-2012 was examined in this paper, by using a developed econometric model in which the multiple regression method was applied and based on relevant data. The empirical research conducted did not confirm the starting hypothesis that the share of the highly educated in the structure of employees between 30 and 34 years in the EU countries in the period 2006-2012 had a positive impact on GDP per capita growth rate over this time interval. The search for the cause of the results obtained in this way should start from the selected observation period, which is characterized by the years before and immediately after the economic crisis of 2008 and 2009. Also, there is an assumption that the education systems of EU countries do not sufficiently follow real development in the labor market, that is, they do not sufficiently educate people who are able to commercialize university-acquired knowl...
Today public policy around the world is being focused on education in a way that has not previously been prominent. Human services have become an important aspect of trade for many countries and the demand for human capital is now growing globally (Bashir, 2007). As higher education is recognized as an important ingredient in the development of human and social capital (Bassanni and Scarpetta, 2001), policies relating to it are becoming central to the economic and public policy of both developed and developing countries.