Abstract

The interest in the relationship between higher education and economic growth is part of an ongoing effort to find solutions to the economic difficulties facing developing countries, and the effect of higher education on economic growth in these countries remains inconclusive. This study investigates the effect of higher education on economic growth in Malawi. Using annual time series data over the period of 1990 to 2023, the study employs an Autoregressive Distributed Lag (ARDL) model to analyse the relationship. The results from the Bounds test of cointegration confirm the existence of a long-run relationship between the variables. The results from the short-run unrestricted error correction model indicate that, in the short run, inflation negatively and significantly affects economic growth. However, in the short run, tertiary school enrolment, Gross fixed capital formation and life expectancy do not affect economic growth. The long run results indicate that inflation and population growth negatively and significantly affect economic growth. In contrast, tertiary enrolment and life expectancy are insignificant in the long run. Given the lack of evidence supporting the premise that higher education fosters economic growth in Malawi, this study finds that there is need for Malawi to prioritize higher education reforms as the means to achieving economic prosperity if it has to reap the benefits of investing in higher education. As a recommendation, it is important for Malawi to look into other education indicators (like research and development) other than increased higher education enrolment only to foster economic growth thus moving from a lower income to a middle income country and achieving the Malawi 2063 vision through human capital development thereby achieving Sustainable Development Goal 4 of quality education.

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School	: School of Law, Economics and Government
Issued Date	: 2024

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