Examining the asymmetric effects of higher education on economic growth in Iran: Markov switching approach

Zarrini, Ebrahim; Najibzadeh, Enayatollah; Nami Fardtehran, Fereshteh; Haghi, Salar

doi:10.22075/ijnaa.2024.35413.5274

Examining the asymmetric effects of higher education on economic growth in Iran: Markov switching approach

Articles in Press

Document Type : Research Paper

Authors

Ebrahim Zarrini ¹

Enayatollah Najibzadeh ¹

Fereshteh Nami Fardtehran ²

Salar Haghi ³

¹ Department of Economics, Payame Noor University, Tehran, Iran

² Department of Accounting, Islamshahr Branch, Islamic Azad University, Tehran, Iran

³ Keshavarzi Bank, Tehran, Iran

10.22075/ijnaa.2024.35413.5274

Abstract

The present study was conducted with the aim of investigating the asymmetric effects of higher education on economic growth in Iran. Playing the role of the educational system in creating and improving the capabilities of human capital, it is necessary to pay attention to the expansion of higher education for manpower in developing countries. In this research, the relationship between the education rate of higher education students and the literacy rate, as well as economic growth, was investigated and tested using the Markov switching approach and seasonal data (2001-2021). The results show a non-linear relationship between the education rate of master's students and economic growth, and the study of the effects of higher education on economic growth in different economic regimes showed that the education rate of senior students in the first and third regimes has a direct and significant effect on economic growth, and in the second regime, its effect on economic growth is reversed and negative. The literacy rate in all three regimes has a positive and significant effect on economic growth. Other studied economic variables, such as the unemployment rate, have a positive effect in the second and third regimes and a negative effect in the first regime. Also, the economic openness index in all three regimes has a positive and significant relationship with economic growth. The results of estimating the performance of the higher education system on economic growth with the Markov switching method show that the performance of the higher education system in the first and third regimes has a direct and significant effect on economic growth in Iran.

Keywords

Higher education system

Economic Growth

Markov switching

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