Higher Education Funding and Economic Growth: Empirical Evidence from Croatia

Lazar, Sebastian; Zugravu, Bogdan; Dornean, Adina

doi:10.47743/saeb-2020-0021

Cited by 4 publications

(3 citation statements)

References 34 publications

(28 reference statements)

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“…Consequently, social welfare, here, is specified as a function which positively depend on human capital and inclusion, while negatively on factors such as education's cost and exclusion (e.g., admission rationing). In reality, this specification is supported by several empirical studies (on this see for example, Morley et al, 2009;Dearden et al, 2011;Caner and Okten, 2013;Radic and Paleka, 2020), which show that raising human capital in the society leads to more economic growth and welfare, whereas raising costs, and imposition of other obstacles to education's access, contribute towards deepening inequalities, and thus undermining social welfare. More formally, Lemma 1 Social welfare is a function which increases in human capital, and decreases in tuition fee and admission criteria…”

Section: Social Welfarementioning

confidence: 86%

University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution

Kiri

2021

SAEB

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The interaction between a university and potential students is examined under the assumptions of financial constraints and of students' abilities following the pattern of a triangular distribution. Subsequently, a comparative statics analysis in terms of welfare and vectors composed of three componentsnamely quality, tuition fee and ability thresholdis provided. Results suggest that the mode of the distribution is an intrinsic part of equilibria, and that a human capital maximizing university makes additional efforts in terms of pricing and non-pricing strategies in order to alleviate the inconveniences arising due to financial constraints and non-uniformity in the distribution of students' abilities.

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Section: Social Welfarementioning

confidence: 86%

University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution

Kiri

2021

SAEB

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“…In turn, Jovović et al [22], in a study conducted on the labor market in Montenegro, concluded that the inadvertencies between the needs of the educational system and the needs of the labor market can significantly influence economic growth and economic development. Another paper, which analyzed the effects of the financing of education in Croatia using "the hypothesis of growth driven by education", tested the fact that Croatia could flourish following increased financing of higher education [23]. At the same time, another analysis confirmed the existence of a positive impact of vocational training costs on economic growth, allowing the authors to conclude that there was a need to develop professional training programs for staff as one of the drivers of macroeconomic development [24].…”

Section: Literature Reviewmentioning

confidence: 99%

Evolution of Interdependencies between Education and the Labor Market in the View of Sustainable Development and Investment in the Educational System

et al. 2023

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Education represents the basic pillar of preparing individuals for integration into the labor market, but also is a crucial component of ensuring sustainable development. The purpose of this research was to identify the type of influences existing between education and the labor market in EU member countries in the context of different levels of investment in the educational system. Cluster analysis and the ordinary least squared method were used to identify the type of influences between the indicators characterizing the level of education and the labor market between 2000 and 2021. The empirical results showed that there was a significant negative correlation of the educational dropout rate with the level of employee compensation, number of hours worked by each employee, and their labor productivity, in the countries with the poorest level of educational investment. In the countries with significant investments in education, getting a graduate diploma and participating in vocational training programs led to a better compensation of employees and a higher employee productivity while the financial aid given by the state for pupils and students reduced the number of worked hours, brought down unemployment amongst people with primary and secondary education and, last but not least, increased the employment rate for higher education graduates. An average level of educational investment led to negative influences between early-stages and employees’ payment level and real labor productivity, while becoming involved in educational activities and participating in vocational training programs increased their rates of remuneration and real productivity. A significant impact of higher education graduates on both increasing unemployment rates and falling employment rates was noticed as has been identified in other studies.

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“…Tsamadias and Prontzas (2012) show for Greece that education has a positive and statistically significant impact on economic growth, while Granger causality results reveal evidence of unidirectional long-term and short-term causality from higher education to economic growth. Radić and Paleka (2020) reveal a unidirectional causality from higher education expenditure to economic growth in the short-run in Croatia. Popović et al (2019) indicate that education affects economic development positively in Bosnia and Herzegovina.…”

Section: A Brief Literature Survey: the Mediterranean Casementioning

confidence: 99%

Education and Economic Growth: Evidence from the EUROMED Countries

Topçu

2023

European Review

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The Mediterranean Strategy on Education for Sustainable Development (MSESD) Report reveals that the Mediterranean is an exceptional eco-region not only due to its geographical characteristics, but also its heterogeneous economic structure, in which education is regarded as a key driver of sustainable development. Given this importance, this study attempts to investigate the impact of education as a channel for human capital accumulation on two different growth concepts in a panel group of eight Euro-Mediterranean Partnership (EUROMED) countries. We utilize an endogenous growth model using annual observations spanning from 2000 to 2017 by employing the Augmented Mean Group (AMG) estimator. Empirical results obtained from the Augmented Mean Group estimator indicate a positive impact of education, regardless of the growth proxy. In addition, empirical findings reveal that the impact of education on inclusive growth is five times higher than that on output growth. We also find that capital is the main driver of growth while inclusive growth is primarily triggered by education. One of the main policy implications raised in this study is that education reforms that attempt to improve educational quality will assist policymakers to achieve sustainable development goals. Extensive policy discussions related to the experiential findings are also provided.

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Higher Education Funding and Economic Growth: Empirical Evidence from Croatia

Cited by 4 publications

References 34 publications

University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution

University Behavior under Borrowing Constraints: The Effect of Students' Abilities Distribution

Evolution of Interdependencies between Education and the Labor Market in the View of Sustainable Development and Investment in the Educational System

Education and Economic Growth: Evidence from the EUROMED Countries

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