Examining the Type of Relationship That Exit Between Higher Education and Economic Growth in USA

Abstract

For a long time, economists and policymaker have argument relationship between higher education and economic growth (especially in long-term economic growth). In the face of the epidemic and financial shortages, some researchers have increased their interest in the rational use of limited resources to drive economic growth. The purpose of this paper is to examine the relationship among higher education investment, education acquisition, and growth rate. The fundamental determinants of growth theory for economic growth are human capital and labor. With the development of theoretical and empirical research in growth, a variety of viewpoints and controversies have been generated, and there are multiple development directions (Hanushek, E. A, 2016). The test results show that higher education expenditure indicators are factors that continue to affect economic growth fluctuations both in the short-term and in the long-term, and have made contributions that cannot be ignored. Higher education has brought huge returns to personal income and reduced unemployment. The educational investment will not directly lead to economic growth but will ultimately affect growth through human capital accumulation and STEM technology innovation. The impact process is a dynamic, self-reinforcing, and circular process. Higher education investment is an essential source of human capital, and the positive effect of human capital on economic growth can only be seen for a long time. Therefore, investment in higher education requires a long-term vision and a quickly transferred mindset.



Author Information
Xianhua Luo, Delaware State University, United States
Seoyeon Lee, Kyungsung University, South Korea
Joseph O. Falodun, Delaware State University, United States

Paper Information
Conference: IICE2023
Stream: Higher education

This paper is part of the IICE2023 Conference Proceedings (View)
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To cite this article:
Luo X., Lee S., & Falodun J. (2023) Examining the Type of Relationship That Exit Between Higher Education and Economic Growth in USA ISSN: 2189-1036 – The IAFOR International Conference on Education – Hawaii 2023 Official Conference Proceedings https://doi.org/10.22492/issn.2189-1036.2023.49
To link to this article: https://doi.org/10.22492/issn.2189-1036.2023.49


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Posted by James Alexander Gordon