Publication Details
Abstract
This study examines the impact of higher education on regional economic development in the Khorezm region of Uzbekistan using econometric modeling. Despite the rapid expansion of higher education institutions and student enrollment in the region, empirical research quantitatively assessing this relationship remains scarce. The theoretical framework draws upon human capital theory and endogenous growth models which emphasize education as a key driver of economic growth.
A quantitative approach was employed using structured survey data collected from 65 respondents across various economic sectors in Khorezm region in 2025, measured on a 5-point Likert scale. Two econometric models were estimated: OLS multiple regression as the primary model and Ordered Logit as a robustness check. Comprehensive diagnostic tests — including Ramsey RESET, Breusch-Pagan, White, Shapiro-Wilk, Jarque-Bera, Durbin-Watson, and VIF analysis — confirmed that all classical assumptions are satisfied.
Results reveal that the perceived regional economic impact of higher education (β=0.289, p<0.001) and graduate effectiveness (β=0.213, p=0.006) are the strongest predictors, followed by wage impact (β=0.172, p=0.032) and significance for startups (β=0.145, p=0.042). Notably, respondents' personal education level was not statistically significant, suggesting that diploma attainment alone does not shape perceptions of economic growth. The model explains 56.1% of variance (R²=0.561), and the Ordered Logit model fully corroborates these findings. Scenario analysis indicates that improving all significant factors by one unit could raise the growth assessment by approximately one full point. The study confirms that education quality matters more than quantity, and offers policy recommendations for strengthening university-industry linkages and fostering regional innovation ecosystems.