The Role of Higher Education on Economic Growth in Ethiopia
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Date
2012-06
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A.A.U.
Abstract
The Role of Higher Education on Economic Growth in Ethiopia
Kidist Ibrie Yasin
Addis Ababa University, 2012
The re is no study that has explicitly shown higher education 's role to economic growth in
Elhiopia; neither its contribution to output growth in general nor the relative importance
ot the two major streams -social science and natural science- in particular. With the
objective of assessing the role of higher education to economic growth and identifY the
relafively more important stream, either social science or natural science, the ·tL/dy
examines the role of higher education graduates to output growth in Ethiopia for the
paiod 1980-2011 . lr splits total graduates into social and natural science streams to
examine their relative significance to output growth in the coUntlY. Thus, three growth
equations are estimated using long-run (co-integration) and short-run (error correction)
methods. Proxies to human capital in each of the three growth equation are rotal
graduates, social science graduates and natural science graduates respectively. The
study finds positive and significant effect of total graduates in output growth both in the
long run and shortrun periods. It also finds a positive and significant coelJicient fo r both
of'the streams in the long and shortrun periods. Moreover, the coefficient of social
science is relatively higher than the natural science. Hence, this study recommend rhe
government 10 invest more on higher education since graduates are positively and
Significantly affecting economic growth of the countly. However, the current priority {o
notllret! science stream in Ethiopia is questionable and needsjitrther investigation
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Keywords
The Role of Higher Education, Growth in Ethiopia