The impact of the number of Higher Education Institutions (HEIs) on the annual regional GDP per capita in Philippine regions
Date
2018-12
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Abstract
Several studies have shown that the presence of higher education institutions (HEIs)
affects economic growth through the production of human capital, innovation and the
quality of education being offered. Although being fourth (4th ) in the world in terms of
countries with most number of HEIs, the Philippines displayed a slower, stunted economic
growth throughout the years. The purpose of this study is to assess and identify the specific
contribution of the number of HEIs to the growth of Gross Domestic Product (GDP) per
capita in the Philippine regions. Separate economic models are estimated by the researchers
to evaluate both short and long run effects of HEIs to GDP per capita of Philippine regions.
The study is limited from the year 2009 - 2017 due to data limitations. The pooled ordinary
least squares model and the fixed effect model showed that having an additional HEI per
region can increase annual real GDP per capita by .3% in the short-run while decreasing
real GDP per capita by .2% in the long-run. Also, result shows that as one additional center
of development or center of excellence (codcoe) translates to an annual 1.84% increase in
real GDP per capita in a region. This further explains that quality as measured by the
number of cod and coe per region affects GDP per capita more significantly than quantity
of HEIs itself.
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Keywords
Higher education institution, GDP, Philippine