Higher Education and Economic Development: A State-Level Analysis of India
Author(s): Panchami Upadya S M, Dr.P. Nandeeswara Rao
Authors Affiliations:
1MA Economic Student, Department of Economics, JAIN (Deemed-to-be University), Bengaluru, India
2Professor (Asst), Department of Economics, JAIN (Deemed-to-be University), Bengaluru, India
DOIs:10.2015/IJIRMF/202502011 | Paper ID: IJIRMF202502011This paper examines the relationship between higher education and economic growth at the state level in India for the period 2009–2019 across the selective states. It applies panel EGLS estimation to assess the effect of higher education institutions, population dynamics, and gross fixed capital formation on per capita GDP. The findings reveal a positive and significant relationship between the number of universities and economic growth, emphasizing the pivotal role of higher education in fostering innovation and human capital development. While gross fixed capital formation also positively influences growth, population growth exhibits a negative correlation with per capita GDP due to resource constraints and infrastructure stress. This research fills the existing gaps in studies through a nuanced state-level analysis of the interplay between university density and macroeconomic variables. The research suggests that, along with increasing the establishment of universities in the underdeveloped regions, quality education should be enhanced and made accessible through digital tools. This study emphasizes that higher education is transformative in propelling equitable economic progress in India.
Panchami Upadya S M, Dr.P. Nandeeswara Rao (2025); Higher Education and Economic Development: A State-Level Analysis of India, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-2, Pp.61-66. Available on – https://www.ijirmf.com/
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