The Role of Higher Education in Economic Growth: Evidence from South Asian Countries

Abstract

Education is a crucial factor for sustainable economic growth, and higher education is considered an engine for development and growth. Therefore, the main aim of this study is to examine the role of higher education in economic growth evidence from South Asian countries such as (Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka) for the period from 1990 to 2019. The panel unit root test reveals that all variables are in a mixed order of integration. The long-run Panel ARDL result shows that the tertiary education enrolment, higher education expenditure, exports, imports, and gross capital formation have a positive effect on GDP per capita. Higher education must deliver the education related to and needed by the labor market. Governments should provide funds to public universities and colleges to support their operations, research, and development. By supporting higher education, governments can promote a more skilled, innovative, and adaptable workforce, which is essential for sustained economic growth.