Higher Education and Economic Growth: A Study for West Virginia
American Journal of Economics 2013, 3(6): 278-282
5 Pages Posted: 2 Jun 2014
Date Written: March 1, 2013
Investment in education to increase economic growth, as one phase of human development, has gained economists’ and policy makers’ interest. It establishes human capital that makes a significant contribution to economic and income growth, and preserves returns as skilled labor that contributes to higher growth and improved quality of life. Researchers have used different theories and models to examine the relationship between education and economic growth, and many of them paid attention to human capital accumulation as a source of acceleration in economic growth. Some studies used human capital as an engine of economic growth for technological change. As the education is a key for better human capital accumulation, the main objective of this study is to analyze higher education and economic growth in West Virginia. A set of simultaneous equations with three endogenous variables of income, education, and population was used for the analysis. The results highlight that income and the educational growth are positively related, and population declines with higher education.
Keywords: Higher Education, Income, Economic Growth, West Virginia
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