RETRACTED ARTICLE: Educational reforms and internationalization of universities: Evidence from major regions of the world

Abstract

Internationalization of universities has become a worldwide phenomenon as global economic integration continues to make its way forcefully into the higher education. The objective of the study is to develop a model for internationalization of universities with the transformation of some promising macroeconomic variables i.e., educational reforms and economic growth in the seven largest regions of the world [namely, East Asia and Pacific (sample 25 countries); Europe and Central Asia (40 countries); Latin America and Caribbean (27 countries); Middle East and North Africa (17 countries); North America (22 countries); South Asia (7 countries) and Sub-Saharan Africa (21 countries)]. The data has been analyzed by panel fixed effect regression from the period of 1990-2011. In addition to transform inputs into output, the study employed eleven indicators of education and five indicators for growth, where the resulting vector is internationalization. The results show the dynamic linkages between educational indicators and economic factors in the selected regions of the World. In East Asia and Pacific region, tertiary and higher education expenditures per student increase the economic factors. Higher education is a powerful driver of long-term growth in Europe and Central Asia. Governments of the state should have to focus on higher education enrolment, as it does not have any significant contribution to increase GDP; gross capital formation and FDI in Latin America and Caribbean region. Higher education enrolment in MENA region significantly increases growth factors on the cost of increase gross national expenditures. Investment in general education and other generic human capital is of the utmost importance in creating an enabling environment for FDI in North America. It is imperative for South Asia to encourage the skill levels and education opportunities for females, in order to maximize the effects of FDI on the female human capital stock and therefore economic growth. Tertiary school enrolment and tertiary expenditures per student identified the importance of tertiary education in Sub-Saharan Africa. The results conclude that educational indicators improve the economic gains, which ultimately reap out the benefit of internationalization. © 2013 Akadémiai Kiadó, Budapest, Hungary.