International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Comparing Concurrent Relationship Predictions between Higher Education Expansion and Economic Growth in China and India
Tien-Li Chen

Education has become an important component of driving the economic growth in a competitive world. Out of curiosity about the two largest developing countries, this study selects China and India as research targets to determine the concurrent relationships between their higher education expansion and economic growth. The series data in terms of gross enrollment ratio (GER) of higher education and gross domestic product (GDP per capital) in China and India from 1973 to 2018 are collected from the World Bank. This study demonstrates the ARIMAX to estimates the concurrent relationships between the GER and GDP per capital for both countries. According to the fittest model, the results show the GER of higher education in China and India is positively correlated with GDP per capital. The result reveals the expansion of higher education is closely related to the economic growth in the target countries. Our prediction trends suggest the GER of higher education in China will increase rapidly leading by economic growth, while India won’t.

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