Impacts of Higher Education on Economic Growth of Afghanistan

Abstract

Higher education serves as a fundamental driver of economic development, particularly in countries striving to rebuild and stabilize their economies. This study empirically examines the impacts of higher education on Afghanistan's economic growth from 1996 to 2022. Using an Ordinary Least Squares (OLS) econometric model, it explores the relationship between various educational indicators and GDP. The findings reveal a positive correlation between tertiary school enrollment (TSE), the Human Development Index (HDI), scientific journal articles (SJA), and GDP. Conversely, incomplete tertiary education (ITE) is found to negatively affect economic growth, highlighting the need for not just access but completion of education. These results suggest that investing in higher education is vital for Afghanistan's economic recovery, particularly in the context of ongoing reconstruction efforts. However, policies must focus on ensuring education completion and alignment with labor market needs to maximize economic benefits. The study concludes that higher education plays a pivotal role in the sustainable development and long-term prosperity of Afghanistan.