The Impact of Higher Education on Global Competitiveness: A Panel Data Analysis for OECD Countries

Abstract

In this article, the impact of higher education on global competitiveness in the Organization for Economic Cooperation and Development (OECD) countries has been analyzed empirically. For this purpose, a dataset consisting of 18 OECD countries, including the period 2004–2018, was formed by using databases obtained from the OECD, World Bank (WB), World Economic Forum (WEF), and the United Nations Educational and Scientific and Cultural Organization (UNESCO). In the application phase, Elena I. Dumitrescu and Christophe Hurlin’s (2012) Granger Panel Causality Test was used to reveal whether there is a short-term relationship between each variable representing higher education and the variable representing global competitiveness (Global Competitiveness Index), whereas Joakim Westerlund’s (2007) Panel Cointegration Test was used to reveal whether there is a long-term relationship. Consequently, it has been determined that there is a causality relationship between each variable representing higher education and the Global Competitiveness Index in the short term and a cointegration relationship in the long term.

JEL: I23, F60, C23.