The effect of structural changes in higher education sector on regional output (Case study: Sistan and Baluchestan Province)

Abstract The aim of this study is of the effect of structural changes in higher education on changes of output in Sistan and Baluchestan Province using structural decomposition analysis (SDA). The input-output tables of this region for the period 2006-2011 have been employed as the database of the model. The structural changes were decomposed into two factors: changes in share of specific sector in total intermediate inputs that were used by higher education sector (input substitution effect) and changes in total intermediate inputs that were used by this sector (backward linkage effect). The changes in final demand is also decomposed to share of higher education in total final demand of region (structure of final demand) and total final demand of this sector (level of final demand). The results at regional level show that the change in level of final demand in the higher education sector is the main source of increasing in total output of the region. Changes in input substitution, backward linkage, and composition of final demand in this sector lead to a decrease in regional output.