EDUCATION AND ECONOMIC GROWTH
-
Authors:
• Sasha OBRADOVIC, Afiliation: Faculty of Economics, University of Kragujevac, Serbia -
Keywords: human capital, economic growth, education, rate of return, capital.
-
Abstract:
This article considers relation which is established between education, human capital and economic growth. The goal of the article is to show concrete suggestions in relation to the influence of education on raising the living standard, based on up-to-date researches. Education istself represents one of the primary components in human capital formation, which is an important factor in modeling the endogenous production functions. The more important the component of human capital in modeling the economic growth is, the more significant the influence for using the technical progress achievements is. Human capital is of essential importance for achieving the sustainable growth rates for developed countries, but the greatest contribution is accomplished through the investment in quantity and quality of primary and secondary education for developing countries. On the quality of the education system depends formation of the human capital that is an important factor and supposition of the economic growth.