Determinants of Economic Development and Employability of Higher Education Institutions Graduates

Abstract

The scope of the data presented in this study offers a comprehensive view of the issue of the HEI graduates employability in the Czech Republic and also in the Slovak Republic – related to determinants of economic development and their impact on them. This paper examines the impact of gross domestic product, gross domestic expenditure on research and experimental development by only higher education sector and foreign direct investment on HEI graduates employability. The results indicate that correlation between unemployment of tertiary educated Slovaks and GDP, GERD and FDI values was very big. Correlation relationship of similar determinants, except determinant GERD in conditions of the Czech Republic was characterized as weak. On the other hand, significantly stronger (very big to perfect) correlation affecting employment of tertiary educated Czechs regarding to indicators of gross domestic product, gross domestic expenditure on research and experimental development by sector of higher education and foreign direct investments as well. In conditions of the Slovak Republic, correlation relationship between employment of tertiary educated Slovaks and GDP was almost perfect.

What Drives Cross-Border Mergers and Acquisitions and Greenfield Foreign Direct Investment Capital Flows? Reconsideration in the Case of the Selected Former Yugoslav Countries

“…Although our assumption was that there would be a positive correlation between the quality of the education system and both modes of FDI capital inflows, the research results show that this relationship is positive only in the case of cross-border M&A value (Table 5), while it takes negative sign when observed the greenfield FDI value (Model 1, Table 6). Basile et al (2010) obtain similar results while considering the correlation between the quality of the education system and the greenfield FDI, and Krajnakova et al (2020) and Miningou & Tapsoba (2020) find that the value of total FDI increases with the increase of this indicator. Why investors in the greenfield FDI in the analyzed countries do not find the high labor force qualification and education crucial determinants?…”

“…Campos & Kinoshita (2003) show that the cost of labor should not be a decisive factor for investment, while Basile et al (2010) conclude that foreign investors are discouraged by high wages of employees, which result from their high qualifications, and that they do not show interest in investing capital in the form of greenfield FDI in such countries. On the other hand, Krajnakova et al (2020) come to the conclusion that total FDI inflows increase with the increase in employment of highly skilled workers, as is the case in the Czech Republic and Slovakia. Similar results were obtained by Miningou & Tapsoba (2020) who prove that increasing the efficiency of the education system and the number of years of schooling, observed together, lead to an increase in FDI inflows.…”

“…There are an enviable number of empirical papers in which authors examine determinants that affect total FDI inflows, while there are fewer empirical studies that analyze factors that only affect cross-border M&A or greenfield FDI inflows, without comparing them (Noorbakhsh et al, 2001;Globerman & Shapiro, 2002;Campos & Kinoshita, 2003;Raff, 2004;DiGiovanni, 2005;Botric & Skuflic, 2006;Kwok & Tadesse, 2006;Bertrand & Zitouna, 2006;Norbäck & Persson, 2007;Sayek, 2009;Cuckovic & Jurlin, 2009;Basile et al, 2010;Visic & Skrabic Peric, 2011;Visic, 2012;Boateng et al, 2015;Waqas et al, 2015;Strat et al, 2015;Xie et al, 2017;Vo, 2018;Uddin et al, 2019;Krajnakova et al, 2020;Miningou & Tapsoba, 2020).…”

“…GDP of a country, as a comprehensive measure of its production of goods and services, indicates the level of its economic development, which gives a signal to investors about return on investment on that location. GDP is the most important indicator of economic activity (Krajnakova et al, 2020). Examining the determinants that affect the attraction of total FDI inflows, Boateng et al (2015) and Vo (2018) conclude that FDI inflows increase with GDP growth.…”

Return on Education Using the Concept of Opportunity Cost

“…The classical approach to assessing the impact of education on individual's economic situation typically focuses on the completion of tertiary education level. The approach to these impacts has been developing for several decades and there are studies from international organizations as well [4][5][6][7][8][9][10]. The consider particularly the effect of education on the potential of higher earnings and lower unemployment, respectively higher employability, of graduates of tertiary education, in various lengths of evaluations.…”