UNIVERSITY RANKINGS AND REGIONAL DEVELOPMENT: HOW HIGHER EDUCATION EXCELLENCE DRIVES ECONOMIC TRANSFORMATION IN CENTRAL ASIA

Abstract

This paper examines the relationship between university ranking improvements and regional economic development in Central Asia. Using panel data from five Central Asian countries (2015-2024), the study analyzes how investments in higher education excellence generate multiplier effects across regional economies. Findings indicate that each 100-position ranking improvement correlates with 0.3-0.5% GDP growth, 15-20% increase in high-tech exports, and 25-30% growth in foreign direct investment. The research examines Uzbekistan’s strategic approach, including Presidential Decree PQ-151’s innovation mechanisms and New Uzbekistan University’s industrial partnerships. Results demonstrate that ranking-oriented reforms catalyze broader economic transformation through four channels: human capital enhancement, innovation ecosystem development, international visibility, and industrial modernization. The paper contributes to regional economics literature by quantifying higher education’s role in economic convergence strategies. Policy implications suggest that strategic investments in university excellence represent high-return development interventions for emerging regions.