Higher education for economic development: contexts of escaping low-and-lower-middle-income trap in ASEAN

Fung Kwan: With the micro-level data of income and other educational indicators, this paper examines the returns to higher education in China. At the full sample level, fixed-effect estimates show no returns to education. After adjusting the endogeneity problem, the returns become around 10 percent. At the individual level, this study finds the returns to education are small for urban, female, and highly educated workers; but significantly positive for those living in the countryside, male, and low-educated workers.The research issue of this paper is important to developing public policy on investment in education in China. Income and wealth inequalities are likely improved with more education investment in the rural area. Nevertheless, more university graduates have recently found difficulty in finding jobs, giving rise to the concern of educated unemployment in the rapidly developing Chinese economy. This phenomenon is fundamentally correlated to the structural rigidity of China's labor and product markets. More research should be devoted to this issue, as it might have profound policy implications to many developing economies during their structural transformation.Together with the debate on the economy approaching its Lewis turning point and the slowdown of GDP growth, China seems to be moving into its growth with a larger contribution from total factor productivity. Inevitably, investment in higher education is both essential to the accumulation of human capital and productivity growth. China appears to be no exception to accepting the role of higher education in its further economic development.

The article investigates the economical efficiency of investments in higher education in modern conditions of Russia. The beginning of the article includes a characteristic of the existing empiric research concerning the efficiency of investments in human capital assets. Further the author of the article introduces the results of pay off calculation of private investments in higher education. The result of the research was that in modern conditions of Russia investments in higher education are exceedingly advantageous. High norms of higher education feedback and short period of pay off of these investments explain the reasons of continuously growing demand for it on the part of the population, especially young people. The article proves that the level of population education in Russia is quite high, however accumulated human capital asset is used insufficiently effective. Many people with higher education are forced to take jobs not requiring higher education. Sharp shift in educational behavior of Russian people raises new demands to labor market. Graduates of higher educational institutions, appearing on a labor market, form qualitatively different demands towards it. But tempo of Russian economics development today can not provide job positions for all graduates of higher educational institutions. That is why structural change of economics is needed.

Deprived of investment in education, no country can expect sustainable economic growth and development. Higher education is particularly a priceless tool in today's era of globalization that requires continuous education to keep up with new knowledge. According to UNESCO (2014), higher education is no longer a luxury; it is essential to national, social and economic development. The impact of education on economic growth is possible to observe within the so-called ‘education led growth hypothesis’. The main aim of this paper it to analyse the higher education size and structure, model and financing sources in Croatia and to test the ‘education led growth hypothesis’ on the example of Croatia. The study will apply the Granger causality test to evaluate if there is any causal relationship between investment in higher education and economic growth in Croatia.

Calls for sustaining and increasing investment in higher education are often made on the basis that higher education is a ‘public good’. The idea of higher education as a public good is frequently conceptualised in terms of its contribution to economic development. If more people participate in higher education then society as a whole will benefit. Outside of the economic benefits of higher education there is less debate as to what is meant by ‘public good’ in the context of higher education. This article explores higher education as a public good and its role in realising the public good. With particular reference to Ireland, the article also looks at the impact of conceptualising the public good role of higher education from an economic perspective and what this implies for students, higher education institutions and society. Since the 1990s Ireland has experienced rapid economic growth, with its thriving economy popularly dubbed ‘the Celtic Tiger’.

The concept of human capital presupposes that formal schooling and experience enhances the productive capacity of individual workers through acquisition of knowledge and skills. Empirical studies on private rate of return to investment in education, around the world, indicate that an extra year in formal education has a positive benefit to the individual. This is in terms of increased lifetime earnings. Employing the Mincerian wage equation, this research article seeksto establish and empirically compare the private rate of return to investment in higher education for teachers in public secondary schools in Uasin Gishu County of Kenya. The research article employed a comparative research design. The target population and data sampling was taken from all the public secondary school teachers from the above County. Primary data from a sample of 574 secondary school teachers was collected by use of a questionnaire. The multivariate regression results showed years of schooling that negatively affected the private rate of return to schooling for secondary school teachers; while experience and experience squared had positive effect on private rate of return. Teachers who hold Diploma certificates earn an average of Kshs31, 231.250, Bachelor’s degree holders earn Kshs54, 047.879. The mean earning difference from teachers having Diploma certificates to teachers having Bachelor’s degrees was Kshs 22,816.629 (73.06%). The rate of return for a Diploma teacher was calculated at 4.20% and Bachelor’s degree at 8.37%. This research article suggests the presence of varying monetary benefits accruing to investment in higher education. Policy implications are discussed.

We investigate the effect of higher education on the evolution of inequality. In so doing we propose a novel overlapping generations model with three social classes: the rich, the middle class, and the poor. We show that there is an initial phase in which no social class invests in higher education of their children such that inequality is driven by bequests. Once a certain income threshold is surpassed, the rich start to invest in higher education of their children, which partially crowds out bequests and thereby reduces income inequality and inheritance flows in the short run. The better educated children of the rich, however, enjoy higher incomes such that inequality starts to rise again. As time goes by, the middle class and potentially also the poor start to invest in higher education. As the economy proceeds toward a balanced growth path, educational differences between social groups and thus inequality decline again. We argue that (1) the proposed mechanism has the potential to explain the U-shaped evolution of income inequality and inheritance flows in rich countries as well as the differential investments in higher education by richer and poorer households, (2) the currently observed increase in inequality is likely to level off in the future.

During the last decade empirical estimates have become available of the yield of educational capital in a number of countries. In this article the meaning of the phrase ‘rate of return to investment in higher education’ is explained and then the relevant evidence in twenty five countries is reviewed. A distinction is drawn between the returns enjoyed by the individual and those accrued to the society as a whole, and the results of the comparison are discussed in terms of their implications for public subsidies towards higher education. Moreover, a comparison is attempted between the returns to physical capital and the returns to investment in higher education at given stages of economic development. The result of the comparisons is that in less developed countries the returns to investment in education are well above the returns to physical capital whereas the returns to university education in advanced countries are of the same order of magnitude or even less than the returns to physical capital.

Education policies are aimed at improving quality of education .The institutions of higher learning are expected to offer unparalleled education to individual’s students with and without one form of disabilities. However, educating students with disabilities in the institutions of higher learning in Kenya is not without some challenges. Thus, this paper examine the historical experiences of students with disabilities in higher education. Secondly, the paper discusses the theoretical concept of disability with particular references to existential, epistemological and its integration within social theory and proceeds to discuss various sub-types of disabilities. Thirdly, the paper identifies and explores various education polices practices being implemented in the institutions of higher learning and questions if there is any distinction observed from traditions. Fourthly, the paper identifies various strategies adopted by institutions of higher learning to enhance achievements of students with disabilities. Some of the education policy practices challenges are highlighted and it’s argued that the challenges constitute African policy narratives that can be dispensed with if due diligence are put in place. Implications of education policy practices are discussed. The paper finally recommends that departments of special needs in the institutions of higher learning be fully equipped to cater for all cadre of students with disabilities.

Calls for sustaining and increasing investment in higher education are often made on the basis that higher education is apublic good'. The idea of higher education as a public good is frequently conceptualized in terms of its contribution to economic development. If more people participate in higher education then society as a whole will benefit. Outside of the economic benefits of higher education there is less debate as to what is meant bypublic good' in the context of higher education. This paper explores higher education as a public good and its role in realizing the public good (Jonathan 2001). With particular reference to Ireland, this paper also looks at the impact of conceptualizing thepublic good' role of higher education from an economic perspective, and what this implies for students, higher education institutions and society.

fiscal stringency are the underlying influences on the level of investment to be investigated in this paper. The relation of these underlying influences to human capital formation and to new aspects of investment behavior will be of interest to economists, whereas the current and future fiscal implications of these influences for institutions are more likely to be of interest to college administrators and others interested in higher education. The two most pervasive influences on real investment in higher education are found to be real family income and the percent of college-age young adults (and veterans) in the population. The influence of real income is well known to be consistent with prior cross-section findings. But it has a reasonable rationale, given imperfect capital markets for student loans, and implications for the future which normally have not been fully taken into account. Instead, the demographic effects following declines in the fertility rate which are seen to be influencing primary and secondary levels are often given almost exclusive emphasis. A third influence coming from public desires to increase access, represented by state and local support of junior colleges and also by the new expansion of the federal Basic Economic Opportunity Grant program, is significant. Fourth, although real interest rates have been a minor i fluence, and then only at private institutions where student borrowing has been more important, increases in prices raise costs to educational institutions and also curtail con-

This article considers at the university level the graduates’ income information, as well as budgetary and private cost estimates to determine budgetary and private impact of education using the calculation of internal rate of return. Since the graduates’ income information is available for only three-year period after the graduation, the synthetic profile of the graduates’ income during their lives is constructed according to the regional microdata. Results of the calculation show that the average impact of higher education is about 9 %, which is consistent with other estimates. In addition to list of universities indicating their impact, the article presents conclusions and recommendations, based on the analysis of the impact’s types and the correlation with other parameters, particularly with Unified State Examination scores for entry into higher education. The article’s value consists in demonstration of the possible approach for estimates, considering impact of investment in higher education at the university, faculty or department level. Researchers of the future can build on methodology and estimates, presented in this article, to obtain more accurate and reliable data on private impact of investment in higher education.

Previous articleNext article No AccessRates of Return to Investment in Education around the WorldGeorge PsacharopoulosGeorge Psacharopoulos Search for more articles by this author PDFPDF PLUS Add to favoritesDownload CitationTrack CitationsPermissionsReprints Share onFacebookTwitterLinkedInRedditEmail SectionsMoreDetailsFiguresReferencesCited by Comparative Education Review Volume 16, Number 1Feb., 1972 Sponsored by the Comparative and International Education Society Article DOIhttps://doi.org/10.1086/445569 Views: 61Total views on this site Citations: 21Citations are reported from Crossref Copyright 1971 The Comparative and International Education SocietyPDF download Crossref reports the following articles citing this article:Claudia Díaz Ríos, Nathalia Urbano-Canal The World Bank and Education Policy in Colombia: A Comparative Analysis of the Effects of International Organizations’ Learning on Domestic Policy, Journal of Comparative Policy Analysis: Research and Practice 28 (Dec 2021): 1–17.https://doi.org/10.1080/13876988.2021.1991796Orla Kelly The Silver Bullet? Assessing the Role of Education for Sustainability, Social Forces 99, no.11 (Jan 2020): 178–204.https://doi.org/10.1093/sf/soz144Claudia Milena Diaz Rios Foreign Prescriptions and Domestic Interests: A Comparison of Education Reform in Argentina and Chile, Journal of Comparative Policy Analysis: Research and Practice 20, no.22 (Oct 2016): 193–208.https://doi.org/10.1080/13876988.2016.1239321George Psacharopoulos, Harry Anthony Patrinos , Education Economics 26, no.55 ( 2018): 445.https://doi.org/10.1080/09645292.2018.1484426James Kenneth Timmis, Steven Black, Rino Rappuoli Improving accountability in vaccine decision-making, Expert Review of Vaccines 16, no.1111 (Oct 2017): 1057–1066.https://doi.org/10.1080/14760584.2017.1382358James Kenneth Timmis, Fabio Rigat, Rino Rappuoli Core values for vaccine evaluation, Vaccine 35 (Jan 2017): A57–A62.https://doi.org/10.1016/j.vaccine.2016.11.034Kapil Dev Regmi Lifelong learning: Foundational models, underlying assumptions and critiques, International Review of Education 61, no.22 (Mar 2015): 133–151.https://doi.org/10.1007/s11159-015-9480-2George Psacharopoulos The Returns to Investment in Higher Education, (Jan 2014): 121–148.https://doi.org/10.1007/978-94-6209-794-0_8Gemma Cassells, Iain H Woodhouse, Genevieve Patenaude, Mavuto Tembo Academic and research capacity development in Earth observation for environmental management, Environmental Research Letters 6, no.44 (Oct 2011): 044002.https://doi.org/10.1088/1748-9326/6/4/044002Dhiraj Sharma The Impact of Financial Incentives on Academic Achievement and Household Behavior: Evidence from a Randomized Trial in Nepal, SSRN Electronic Journal (Jan 2010).https://doi.org/10.2139/ssrn.1681186Stephen Morris, Alistair McGuire The private net present value and private internal rate of return to becoming a nurse in Great Britain, Applied Economics 34, no.1717 (Nov 2002): 2189–2200.https://doi.org/10.1080/00036840210139328Jorge R. Sanchez, Frankie Santos Laanan The Economic Returns of a Community College Education, Community College Review 25, no.33 (Sep 2016): 73–87.https://doi.org/10.1177/009155219702500306George Psacharopoulos, Ying Chu Ng Earnings and Education in Latin America, Education Economics 2, no.22 (Jul 2006): 187–207.https://doi.org/10.1080/09645299400000016L.C. Solmon The Quality of Education, (Jan 1987): 53–59.https://doi.org/10.1016/B978-0-08-033379-3.50015-2Lewis C. Solmon Quality of education and economic growth, Economics of Education Review 4, no.44 (Jan 1985): 273–290.https://doi.org/10.1016/0272-7757(85)90013-5S. Heyneman Educational investment and economic productivity: Evidence from Malawi, International Journal of Educational Development 4, no.11 (Jan 1984): 9–15.https://doi.org/10.1016/0738-0593(84)90023-3Stephen P. Heyneman Investment in Indian education: Uneconomic?, World Development 8, no.22 (Feb 1980): 145–163.https://doi.org/10.1016/0305-750X(80)90023-6Doug White Comparisons as Cognitive Process, and the Conceptual Framework of the Comparativist, Comparative Education 14, no.22 (Jul 2006): 93–108.https://doi.org/10.1080/0305006780140202Thomas La Belle, Robert Verhine Nonformal Education and Occupational Stratification: Implications for Latin America, Harvard Educational Review 45, no.22 (Jul 1975): 160–190.https://doi.org/10.17763/haer.45.2.25g8026w70601705Lee Sigelman, Raoul Naroll Holonational Bibliography, Comparative Political Studies 7, no.33 (Jun 2016): 357–382.https://doi.org/10.1177/001041407400700305Jan Versluis Secondary education, training and employment: The qualitative mismatch in developing countries, Prospects 3, no.33 (Sep 1973): 349–356.https://doi.org/10.1007/BF02198530

The contribution of education to economic growth is mainly achieved indirectly through two aspects: improving the quality of workers and increasing labor productivity. The improving of workers' level of education is the source to make the quality of their labor better. Based on Cobb-Douglas production function, the article constructs an improved production function by adding the education factor, through which it calculates that contribution rate of investment in education and higher education in China to the economic growth were 12.855 percent and 2.410 percent separately from 1996 to 2008.According to the results of the calculation, the article concludes that the pulling effect of investment in education and higher education in China on economic growth has markedly increased but still far below that in developed countries, and analyzes the main reasons for the conclusion which are the college enrollment policy and inadequate investment in education.

The improvement of the quality of labor is a fundamental element in promoting national economic development, and the value created by high-level human capital will continue to be demonstrated in the rapid development of society. According to the relevant provisions of human capital theory, the impact of human capital on regional economic growth is mainly considered from two aspects: the "quantity" and "quality" of human capital. According to relevant empirical results, there is a strong autocorrelation between higher education investment and advanced human capital in geographical space. The direct and indirect spillovers of technological innovation effects in advanced human capital can both promote economic growth. Therefore, many educators, economists, and others view the country's financial investment in education as an endogenous variable for regional or even national economic development. In the following research, the author takes the economic convergence of the eastern, central, and western regions of China as the starting point to explore the relationship between higher education investment, human capital structure, and regional economic growth, and to study the internal relationship between higher education and regional economy.

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