Education Quality and Economic Growth

Much faith has been put in the increased supply of education as a means to promote national economic development and as a way to assist the poor and the disadvantaged. However, the benefits that nations can obtain by increasing the level of education of their workforce depends on the availability of other forms of capital to complement the use of its educated workforce in production. Generally, less developed nations are lacking in complementary capital compared to more developed ones and it is appropriate for less developed countries to spend relatively less on education. The contribution of education to economic growth depends on a nation’s stage of economic development. It is only when a nation becomes relatively developed that education becomes a major contributor to economic growth. It is possible for less developed nations to retard their economic growth by favouring investment in educational capital rather than other forms of capital. Easy access to education is often portrayed as a powerful force for assisting the poor and the disadvantaged. Several reasons are given here as to why it may not be so effective in assisting the poor and in promoting greater income equality even though the aim is a worthy one. Also, an economic argument is presented in favour of special education for the physically and mentally handicapped. This paper is not intended to belittle the contribution of education to economic development nor to devalue the ideal of making basic education available to all. Instead, it is intended as an antidote to inflated claims about the ability of greater investment in education to promote economic growth and about the ability of more widespread access to education to reduce poverty and decrease income inequality.

1995

Education is the key for economic growth and social development in developing countries. This paper presents findings of a study that analyzed the impact of overall educational expenditures on economic growth in developing nations. It also identifies the levels of education that should be allocated more public expenditures. The study used regression analysis of GNP (gross national product) data of over 140 countries obtained from the World Development Reports of 1982 and 1992 published by the World Bank. Findings indicate that the allocation of greater expenditures on education, especially on primary education, has a positive impact on countries' economic development. Three tables are included. (Contains 20 references.) (LMI)

2014

The Cameroon economic updates aim at sharing knowledge and stimulating debate among those interested in improving the economic management of Cameroon and unleashing its enormous potential. The notes thereby offer another voice on economic issues in Cameroon, and an additional platform for engagement, learning, and exchange. The average observed economic growth rate from 2010 to 2013 is a mere four percent, one percentage point below the vision 2035 targets. Achieving the official objectives set for 2020 will require Cameroon to move to double digit annual growth rates over the 2014-2020 period, compared to the 4.8 to 5.4 percent projected by the World Bank. This report looks at the quality of basic education to ensure that the right investments are made in people to build human capital, a key ingredient for sustainable economic growth. Cameroon has achieved significant progress over the last decade in expanding access to basic education. The number of students completing primary sch...

The Pakistan Development Review, 2000

vSeveral studies have shown that investment in the quality of education has a higher payoff than investment in quantity alone.1 However, in many developing countries, investment in improving educational quality is still accorded a lower priority than investment in educational quantity. Countries which commit more resources towards education are generally observed to expand their enrolment ratios while paying little attention on improving such schooling inputs as student-teacher ratio that contribute towards improvement of educational quality (Table 1).2 There is also a tendency to allocate minimal resources towards upgrading existing schools by improving quality of teaching, facilities, and curricula. Greater emphasis is placed on rapid expansion of the number of educational institutions to reach out a large proportion of population.

World Bank Publications, 2009

All rights reserved 1 2 3 4 12 11 10 09 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The fi ndings, interpretations, and conclusions expressed in this volume do not necessarily refl ect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.

Policy Research Working Papers, 2007

The role of improved schooling, a central part of most development strategies, has become controversial because expansion of school attainment has not guaranteed improved economic conditions. This paper reviews the role of education in promoting economic well-being, with a particular focus on the role of educational quality. It concludes that there is strong evidence that the cognitive skills of the population-rather than mere school attainment-are powerfully related to individual earnings, to the distribution of income, and to economic growth. New empirical results show the importance of both minimal and high level skills, the complementarity of skills and the quality of economic institutions, and the robustness of the relationship between skills and growth. International comparisons incorporating expanded data on cognitive skills reveal much larger skill deficits in developing countries than generally derived from just school enrollment and attainment. The magnitude of change needed makes clear that closing the economic gap with developed countries will require major structural changes in schooling institutions.

R. Cowen and A. M. Kazamias (eds.), International Handbook of Comparative Education, 633–650. © Springer , 2009

Procedia - Social and Behavioral Sciences, 2013

Education is a key factor in any strategy designed to encourage economic development. This paper aims to highlight the limits of quantitative approaches concerning the relation between education and economic development. The risks associated with actions proposed by different strategies are related to the overaccumulation of educational capital compared with the labor market needs. For this reason, these strategies should be rethought, and the educational systems should be reformed using quality criteria. Thus, the institutional frame that allows to link education with labor market should be taken into account.

RePEc: Research Papers in Economics, 2007

Faculty of Commerce, 2020

2003

Journal of Economics and …, 2010

The study of economic growth across countries has been of utmost interest to economists explaining the various factors that contribute to the growth and development of countries. Thus, in recent times "human resources have been recognized to constitute the ultimate basis for the wealth of nations. In other words, while capital and natural resources are passive factors of production, human being are the active agents who accumulate capital, exploit natural resources, build social, economic and political organizations and carry forward national development. Against this background, this study examines the relationship between education and economic performance in West Africa, using the panel data ordinary least square analysis of selected countries across the sub-region. In conclusion the study recommends that education does matter and it should be restructured to strengthen the human capacities for improved economic performance.

2011

At the request of the World Bank’s International Comparison Program Global Office, EPDC developed a methodology for estimating the output of education services in low and middle income countries, by focusing measurement alongside two major elements: volume of services and quality of outcomes. The volume of services is measured by the number of pupils in the formal education system, adjusted for biases resulting from inefficiencies. The quality of outcomes is measured by learning scores, either observed or imputed using a set of predictors. A variety of safeguards and adjustments are presented to minimize the effects of uncertainty and measurement error. As a result, both volume and quality measures are proposed for subsequent transformation into purchasing power parities for all countries participating in the 2011 ICP cycle. The Education Policy and Data Center (EPDC) is a partnership of the United States Agency for International Development (USAID) and FHI 360. The mission of EPDC ...

Indo-French Educational Partnerships, 2016