The formation of human capital in modern economic growth theory is one of the underlying foundations of economic growth. Higher education, such as that offered through the State University of New York (SUNY) system, serves as an important gateway to developing and expanding human capital within the state. Established in 1948, SUNY has grown from 28 to 64 institutions, with a total enrollment of more than 427,000 students, approximately 37% of all higher education enrollments in the state. Using a growth accounting framework, the authors examine SUNY’s impact on state economic growth from 1960 to 2001. The results of the analysis indicate that investments in SUNY and growth in state output and income are cointegrated and that SUNY has a positive and significant effect on state economic growth.
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