Education Investments: An Important Factor of Economic Growth

DOI

10.2991/978-94-6463-686-4_54How to use a DOI?

Keywords

Education; Human Capital; Economic Growth; Structural Changes; Sustainable Development

Abstract

In the context of a globalizing world economy, characterized by the rapid spread of information technology and internationalization of economic activities, strengthening the educational potential of a country becomes an independent factor in economic growth. The extent of investment in human capital, especially in education is largely related to the country’s strategy for further economic development. Similar to other investments, education has both direct and indirect impacts. Additionally, there are non-economic effects, such as reduced crime rates and environmental protection. Despite the fact that there are significant gaps in the educational systems in different countries, almost everyone in the world views investments in their educational systems as important in the economic progress. This article extensively analyzes previous research conducted by scholars in this field. The reviewed literature indicates that countries with higher levels of education experience faster economic growth. Furthermore, structural changes driven by education are noted to accelerate economic growth. However, most of these studies have focused on examples from developed countries. As an indicator of investment in education, data on government expenditure on education (sourced from UNICEF and the European Training Foundation), education quality (OECD, PISA 2018), enrollment rates, and average years of schooling have been collected and analyzed to identify recent trends. To model the impact of education on GDP, a production function was utilized, establishing a mathematical relationship between average years of schooling and total output. The research method involves a descriptive analysis of educational statistics from the past 10 years. The findings support the notion that countries prioritizing education tend to experience faster economic development, greater innovation, and improved public health, ultimately leading to a more dynamic and resilient economy.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Isfandiyarova Ulkar Fizuli
AU  - Ismayilova Parvana Mahammad
AU  - Alizade Narmin Asadullah
AU  - Sadiqova Nurane Hidayet
PY  - 2025
DA  - 2025/04/28
TI  - Education Investments: An Important Factor of Economic Growth
BT  - Proceeding of the 10th International Conference on Lifelong Education and Leadership for ALL (ICLEL 2024)
PB  - Atlantis Press
SP  - 798
EP  - 808
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6463-686-4_54
DO  - 10.2991/978-94-6463-686-4_54
ID  - Fizuli2025
ER  -