Education-Economic Growth Nexus: A Review

Jangraiz KHAN, Zilakat Khan MALIK

Abstract


This paper is focused on a review of education and economic growth relationship. It reviews both the theoretical as well as empirical literature relevant to education-economic growth nexus. The study of economic growth is an old area but addition to the determinants remained a unceasing during the history. The human capital-economic growth relationship is evident even from Adam smith theories. However, it got formal recognition in New Growth theories. The literature shows that human capital is not measurable directly; instead, some proxies are used for it. Education, health, research and development, experience and skills are some of the most commonly measures for human capital. Education as a determinant has been used extensively. Some of the studies recognize its positive role while others negative. Different levels of education showed different type of effects. It is concluded on the basis of reviewed literature that human capital in form of education affects economic growth through different channels.

Keywords. Education, Economics Education.

JEL. O10,O15, O40.


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DOI: http://dx.doi.org/10.1453/jest.v2i2.312

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