Economic Development and Education: Correlation and Impact

This research paper examines the relationship between the economic development and the prevalence of education. Also, the correlation between the two will be discussed. The main goal of this paper is to identify whether a country’s economic growth increases the widespread of its education or not. Furthermore, the changes in universal literacy will be analyzed in relations to the reinforcement on economic advancement. Following this main question, this paper will also deliberate on whether or not an economic prosperous country will allocate more funds in education.

Thus, as a family’s wealth increases, parents would be more likely to invest more money in educating the next generation. Through this research, increasing the prevalence of education indeed brings a tremendous amount of benefits to the personal financial growth, yet not national economic growth. Unexpectedly, econometric tests invalidate the correlation between education and economic growth. More expenditure in educational funds does not mean more economic growth for a nation. Nevertheless, economic development does lead to an accelerated literacy rate in a country.

The millions of people are going through the pains of hunger, abject poverty, illiteracy, homelessness, orphanage, and rejection. A dollar a day may seem meaningless to us, but it can pay for a one-year’s worth of school supplies for a third world country. Television commercials and flyers always solicit donations to help the third-world countries, in particularly their literacy rates, through organizations such as The World Charity Foundation, Inc. Would a higher literacy rate improve a country’s economic status? Does a country’s economic development boost the level of education in its citizens?

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In the past thirty years, the phenomenon of immigrating and studying abroad is more common in China. This phenomenon reflects that China’s rapid economic development leads people to a greater opportunity of acquiring a higher-level education. Not only China, but also other several third-world countries have become developing countries and made some prolific economic progresses. The growth of a country confers on education a major role as an essential engine of the economic development. The controversial argument of whether a country’s economic growth increases the widespread of its education has been examined from various perspectives.

Furthermore, the changes in universal literacy and the population’s average years of schooling will be analyzed in relations to the reinforcement on economic advancement. Economic growth is a sophisticated phenomenon that involves masses of economic, social and political judgments. Explicating the growth is a crucial task by accounting for these factors. Dawood Mamoon and S. Mansoob Murshed compare “the role of human capital accumulation measured by the number of years of schooling with the relative contribution of institutional capacity to prosperity. Therefore, education is not the only determining factor of the development of a country’s economy; the direct link between the two has yet to be established. However, the relationship between the national GDP and education cannot be overlooked. It is a common myth that more education certainly leads to higher economic growth has an omnipresent influence across both the developed and the developing countries. Many policy makers of these countries emphasize the importance of allocating budgets in expanding and improving the education system will lead to a prosperous future for their countries.

Alison Wolf (institute of education, University of London) indicates that “when tested against the evidence, both of these ideas turn out to be surprisingly ill-founded. ” Besides, widespread education is equivalent to a country as building a solid foundation. Although, there is no clear correlation between education and economic growth, to make compulsory education universal still bring huge rate of returns for the growth in the individual living standard. According to a new report from the College Board in 2005, which makes the circumstance that higher education profits all U. S. citizens by increasing the rates of return on investments in higher education both for one’s who is doing well in college or university and for society as a whole. In this paper, I explore a comprehending of the role of education in the processes of flowering a country’s economics. Through this research, increasing the prevalence of education indeed brings a tremendous amount of benefits to the personal financial growth, yet not national economic growth. Unexpectedly, econometric tests invalidate the correlation between education and economic growth.

More expenditure in educational funds does not mean more economic growth for a nation. Nevertheless, economic development does lead to an accelerated literacy rate in a country. In what follows I will look upon my three chosen academic articles in turn, stating a succinct framework of the neighborly connections between a country’s economy and education. Then I will utilize some tangible evidences to advocate the main ideas. Ultimately, I will conclude this paper with some impressions on what connotations these justifications have for the study of education and growth.

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