THE CONTRIBUTION OF HIGHER EDUCATION TO ECONOMIC GROWTH OF WESTERN BALKANS: EVIDENCE FROM KOSOVO, ALBANIA, NORTH MACEDONIA, AND MONTENEGRO

This paper aims to explore the contribution and impact of higher education on the economic growth of the Western Balkan countries, with special emphasis on Kosovo, Albania, Montenegro, and North Macedonia. Hausman – Taylor IV model was used to derive statistical results, while the data used are panel data for the period 2000-2020. Bosnia and Herzegovina as well as Serbia were not included in the research because it was not possible to obtain the necessary data for these countries for the given period. The results obtained from this research provide evidence that higher education in these countries has a positive impact on economic growth, namely on the GDP growth of these countries. Some variables are significant and are positively related to the dependent variable, while others are negatively related to the dependent variable. This research is among the few research, or among the first researches that have elaborated on this problem for these countries which are still in political and economic transition. Therefore, it is of special importance for researchers in the field of European and regional integration, education, economics, justice, etc