Econometric study of household economic conditions and financing of higher education in South Asian Countries

The relationship between the economic conditions of the household and financing of higher education in selected countries of Asia like India, Pakistan, Bangladesh, Sri Lanka and Nepal is investigated in this study. The analysis is based on a panel econometric model that examines the effect of socio-economic factors, such as household income, unemployment, poverty rates, remittances, and access to tertiary education, on household spending on higher education. The fixed-effects regression model uses to account for unobserved country-specific heterogeneity and to generate more robust estimates across countries.
Results of the empirical tests show that the income of the households and remittances have a statistically significant impact on financing higher education in a positive way, which means that they play an important role in improving the affordability of higher education. Conversely, increases in unemployment and poverty are linked with decreases in investment in education by households. A comparison across countries reveals Sri Lanka and India have relatively high spending on higher education by the household while Pakistan has relatively low spending. Finally, the study highlights the importance of policy interventions such as financial assistance mechanisms and inclusive education financing strategies that can help ensure equitable access to higher education in South Asia.