The nexus between higher education and economic growth in Morocco: an empirical investigation using VaR model and VECM

Educational economics focuses on the relationship between economics and education, which is key to the development of modern society. Generally speaking, the greater an economy is developed, a higher level of education for its residents is produced, and more education is developed (significantly higher education). As an essential channel for cultivating national human resources, higher education has become a crucial avenue for a country to achieve sustainable development. The value measures the risk of investment at risk (VaR). The probability of a group of investments losing a certain amount during a given period (a day, a month, and a year) is estimated. This article investigates the relationship between Morocco's economic growth and higher education investments, developing VaR and vector error correction (VEC) models using Moroccan economic data from a time series spanning 2001 to 2018. There is a positive relationship between investment in higher education and economic growth in Morocco and a stable relationship between staffing and the economy's growth. However, it also shows that economic growth has played a limited role in promoting investments in higher education. This paper, therefore, provides some suggestions based on the guiding ideology and objectives of Morocco's education reform and development plan.