The Role of Higher Education and Financial Development on Economic Growth: Evidence on North Cyprus

Year 2024, Volume: 38 Issue: 2, 76 - 82, 22.04.2024

Hatice İmamoğlu , Behçet Öznacar

https://doi.org/10.16951/trendbusecon.1467671

Abstract

This research aims to examine the effects of the development in the higher education and financial sector on economic growth in the case of North Cyprus. Findings of time series data show that there is a long-term equilibrium relationship between real income and its elements such as labor, capital, higher education, and financial growth. Results show that both capital and labor have a statistically significant effect on economic growth. Additionally, development in the financial sector is a significant contributor to economic growth, however, higher education shows evidence of greater contribution to economic growth in North Cyprus. It draws attention that the higher education sector has a greater impact on economic development than the financial sector. In this context, government authorities should support both the financial and higher education sectors in order to accelerate their contribution to economic development. Policymakers needed to concentrate more on the higher education sector in Northern Cyprus.

Keywords

Financial Development, Higher Education, ARDL Approach, North Cyprus, Economic Growth

Yüksek Öğrenim ve Finansal Gelişmenin Ekonomik Büyüme Üzerindeki Rolü: Kuzey Kıbrıs Üzerine Kanıtlar

Abstract

Bu araştırmanın amacı, yükseköğretim ve finans sektöründeki gelişmelerin ekonomik büyüme üzerindeki etkilerini Kuzey Kıbrıs örneğinde incelemektir. Zaman serisi verilerinin bulguları, reel gelir ile emek, sermaye, yüksek öğrenim ve finansal büyüme gibi unsurları arasında uzun dönemli bir denge ilişkisi olduğunu göstermektedir. Sonuçlar, hem sermayenin hem de emeğin ekonomik büyüme üzerinde istatistiksel olarak anlamlı bir etkiye sahip olduğunu göstermektedir. Ek olarak, finans sektöründeki gelişme, ekonomik büyümeye önemli bir katkıda bulunur, ancak yüksek öğrenim, Kuzey Kıbrıs'ta ekonomik büyümeye daha fazla katkı sağladığına dair kanıtlar göstermektedir. Yükseköğretim sektörünün ekonomik kalkınma üzerinde finans sektöründen daha büyük bir etkiye sahip olduğuna dikkat çekmektedir. Bu bağlamda hükümet yetkilileri, ekonomik kalkınmaya katkılarını hızlandırmak için hem finansal hem de yükseköğretim sektörlerini desteklemelidir. Politika yapıcıların Kuzey Kıbrıs'taki yüksek öğretim sektörüne daha fazla odaklanması gerekmektedir.

Keywords

Finansal Gelişme; Yüksek Öğrenim; Ekonomik Büyüme, ARDL Yaklaşımı, Kuzey Kıbrıs

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