A Study on FDI in Education Sector and Its Impact on Gross Enrolment Ratio in Higher Education in India: An Econometric Approach

Debjyoti Dey, (ACS) Sapana Mishra
2018 International Journal of Management Studies  
Higher education in India has been lagging behind due to various reasons. According to statistics of 2015-16, published by Ministry of Human Resource Development (MHRD), about 24.5% of the population is enrolled in the institutes of higher education in the country. Education ministry came up with the proposal of 100% Foreign Direct Investment (FDI) in higher education in the country. In the present research we found the relationship between FDI in Education and Gross Enrolment Ratio (GER) in
more » ... t Ratio (GER) in Higher Education in India. Co-Integration Test Analysis: Given that the variables are assumed to be stationary-integrated of the same order, the co-integration analysis will be appropriate to estimate the long-run relationship since the theory assert that non-stationary time series are co-integrated if their linear combination is stationary. The co-integration tests involve testing for the presence of long-run equilibrium relationship between the variables of the same order of integration through the formulation of co-integration equation(s). The maximum likelihood test method recommended by Johansen and Juselius (1988, 1990) is used. The co-integration requires the error term in the long-run relation to be stationary. Exclusively, given that Y t is a vector of n number of stochastic variables, it follows that there exist a K-lag vector auto-regression with Gaussian errors of the following structure where Johansen and Juselius methodology adopt its initial point in the vector auto regression (VAR) of order k specified by: Table No. 4: Test of Co-integration (Trace and Max-Eigenvalue) Sample (adjusted): 4 13 Included observations: 10 after adjustments Trend assumption: Linear deterministic trend Series: FDI GER Lags interval (in first differences):1 to 2
doi:10.18843/ijms/v5i3(6)/06 fatcat:bni37mlmobghrdp6o5vbe7mhcm