The Effect of Education on Economic Growth
The Effect of Education on Economic Growth
Abstract
Education is one of the primary factors of development. Countries can’t achieve economic development without investment in human capital. Vocational training and higher education equip a worker to perform certain jobs or functions .It improves the quality of their lives and leads to social benefits to individuals and society like improving income distribution. Education increase people's productivity and creativity and promotes entrepreneurship and technological advances. Technological progress reflects the growth of human knowledge.
The purpose of this paper is to examine the role of investment in human capital in promoting economic growth and technological progress. Some empirical studies conclude that there is strong evidence that skills of population are powerfully related to long run economic growth. However, another study finds the linkage to be insignificant and some find the economic growth depends negatively on the cost of education or on the barriers to get education.
Introduction
Many researches have shown there is a strong positive relationship between investment in human capital and economic growth .scholars and policymakers focus on income growth to measure economic growth and the improvement in the standard of living of humans in the United States and in foreign countries. One of the policies that policymakers focus on to improve per capita income in a country is improve the quality of education or increase human capital .the main resource of this conclusion comes from the human capital theory. the theory says educated workers have higher human capital and thus higher productivity. Therefore, education increases the worker earning potential. The result of Some empirical studies find out that human capital and growth rate of GDP have positive relationship .increase spending on higher education leads to increase in per capita income, but some studies find the
Abstract
Education is one of the primary factors of development. Countries can’t achieve economic development without investment in human capital. Vocational training and higher education equip a worker to perform certain jobs or functions .It improves the quality of their lives and leads to social benefits to individuals and society like improving income distribution. Education increase people's productivity and creativity and promotes entrepreneurship and technological advances. Technological progress reflects the growth of human knowledge.
The purpose of this paper is to examine the role of investment in human capital in promoting economic growth and technological progress. Some empirical studies conclude that there is strong evidence that skills of population are powerfully related to long run economic growth. However, another study finds the linkage to be insignificant and some find the economic growth depends negatively on the cost of education or on the barriers to get education.
Introduction
Many researches have shown there is a strong positive relationship between investment in human capital and economic growth .scholars and policymakers focus on income growth to measure economic growth and the improvement in the standard of living of humans in the United States and in foreign countries. One of the policies that policymakers focus on to improve per capita income in a country is improve the quality of education or increase human capital .the main resource of this conclusion comes from the human capital theory. the theory says educated workers have higher human capital and thus higher productivity. Therefore, education increases the worker earning potential. The result of Some empirical studies find out that human capital and growth rate of GDP have positive relationship .increase spending on higher education leads to increase in per capita income, but some studies find the