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Higher education development and economic growth in Iran

Higher education development and economic growth in Iran Purpose – Higher education has a vital role to play in shaping the way in which future generations learn to cope with the complexities of sustainable development. Universities and higher education institutions educate highly qualified graduates and responsible citizens able to meet the needs of all sectors of human activity; they provide opportunities for higher learning and for learning throughout life; they advance, create and disseminate knowledge through research and provide, as part of their service to the community, relevant expertise to assist societies in cultural, social and economic development; they contribute to the development and improvement of education at all levels, including through the training of teachers. The objective of this study is to examine the relationship between higher education and economic growth in Iran. Design/methodology/approach – First, a baseline survey analysis of Iran supported by tables and figures was conducted. Secondly, by using multivariable time series data on the variables: annual logarithmic gross domestic product, physical capital (K), human capital, research expenditures (R) and by using an autoregressive distributed lag (ARDL) model, the long‐ and short‐run relationship between the growth and higher education variable was investigated. The following steps were followed: test of a dynamic ARDL model, CUSUM and CUSUMQ test for stability, long‐run relationship and ECM test. Findings – The results indicated that the higher education variable had a positive effect on the economic growth of Iran in both the short and long run. Originality/value – The research in this paper has implications for government policy makers responsible for investment in higher education. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Education, Business and Society: Contemporary Middle Eastern Issues Emerald Publishing

Higher education development and economic growth in Iran

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1753-7983
DOI
10.1108/17537980810909788
Publisher site
See Article on Publisher Site

Abstract

Purpose – Higher education has a vital role to play in shaping the way in which future generations learn to cope with the complexities of sustainable development. Universities and higher education institutions educate highly qualified graduates and responsible citizens able to meet the needs of all sectors of human activity; they provide opportunities for higher learning and for learning throughout life; they advance, create and disseminate knowledge through research and provide, as part of their service to the community, relevant expertise to assist societies in cultural, social and economic development; they contribute to the development and improvement of education at all levels, including through the training of teachers. The objective of this study is to examine the relationship between higher education and economic growth in Iran. Design/methodology/approach – First, a baseline survey analysis of Iran supported by tables and figures was conducted. Secondly, by using multivariable time series data on the variables: annual logarithmic gross domestic product, physical capital (K), human capital, research expenditures (R) and by using an autoregressive distributed lag (ARDL) model, the long‐ and short‐run relationship between the growth and higher education variable was investigated. The following steps were followed: test of a dynamic ARDL model, CUSUM and CUSUMQ test for stability, long‐run relationship and ECM test. Findings – The results indicated that the higher education variable had a positive effect on the economic growth of Iran in both the short and long run. Originality/value – The research in this paper has implications for government policy makers responsible for investment in higher education.

Journal

Education, Business and Society: Contemporary Middle Eastern IssuesEmerald Publishing

Published: Aug 8, 2008

Keywords: Human capital; Higher education; Economic growth; Iran

References