The contribution of higher education to economic development can also be measured
more usefully with the help of a production function or even a simple regression equation.
Using the gross enrolment ratio and higher educational attainment as higher education
variables, Tilak (2003) has shown that both can expect to have a positive effect on the level
of economic development (as measured by GDP per capita). Using data on 49 countries
of the Asia Pacific region, GDP per capita in 1999 was regressed on enrolment ratio
around 1990. A time lag was allowed in the production function to yield meaningful
results.