The position of Education to Relation with Economic Development in Developing Countries (The Selection Countries)

اقتصاد پولی مالی

Article 7, Volume 25, Issue 16, October 2018, Pages 201-224   

Document Type: پژوهشی

DOI: 10.22067/pm.v24i14.56348

Authors

abasali lotfi^* ; shiva jalayer lain

Ferdowsi University of Mashhad

Abstract

In this study with pay attention study of effect of investing own education and training in economic growth of selected development countries like ( Iran, Bulgaria, Peru, Romania, Thailand, Turkey, Melissa, Argentina, Brasilia, chili and Mexico) with the use of panel data of 2015 to 2005
The result said studying discusses the positive effect of investment in education and training on economic growth of selected development countries. Also low education expenditure and as a result of this regarding the effect of education and training on skilled labor force is the most important factor of levering economic growth in developing countries. Their for it is better with paying attention to increasing young population in developing countries and the needs of these countries to growth and increasing of production and from other side they should pay attention to the increasing of quality of education and training with increasing the expenditures of education training.

Extended Abstract
Introduction
This study investigates the impact of investment in education on economic growth of selected developing countries in the period (1999-2015) using the panel data approach and using education al expenditures data in both primary and secondary levels. Today countries are seeking to improve the quality of their labor force because they believe that more producing is dependent to qualified labor force in this respect, the education represents the most important kind of human investing that predisposing deeper view to production improvement. The most economics believe that the lack of investment in human capital is main cause of low economic growth in developing countries and until the education of these countries does not improve the use of knowledge and the professional skills . the efficiency of labor force and capital remains at a low level and economic growth will be slow and more costly in fact we can say that the physical capital will be more productive only if the country has enough amount of human capital.so to explain the impact of growth on poverty and analyses usefulness of growth, it is necessary to incorporate all the possibilities that enhance well- being of the poor. However, it is really hard to do .so the major capacities, which lead to improve the quality of life, should be giving education. Without any doubt we can say one of the main access growth and economic development is training and education. Even some people believe that the completion of this sectors can complete other sectors. Economic growth in addition to production factors (labor, capital .land) depends on bitterness on quality of workforce’s technical growth better resource allocation and in the last education and training.

Theoretical Framework.
This study investigates the impact of investment in education on economic growth of selected developing countries in the period 1999-2015 using the panel data approach and using education expenditures data in both primary and secondary levels the most important problem in the human capital –economic growth nexus is that why human capital can’t play its role in increasing economic growth in natural resource abundance countries . There are tests for chaos in time series such as correlation dimension .BDS. Methodology. - For the purpose of this study the following question was posed. Whether how the countries are seeking to improve the quality of their labor force because they believe that more producing is dependent to qualified labor force today, countries are seeking to improve the quality of their force because they believe that more producing is dependent to .qualified labor force . In this respect, the education represents the most important kind of human investing that predisposing a deeper view to production improvement. . one approach to look at the impact of growth on education is to compare called pen’s parade to see whether it is pro poor it needs to calculate the growth rate in the mean of the poorest quintile.
Results and Discussion.
The results show that the coefficients of the model variables are significant at the 99percent confidence level. In addition the – statistic indicate significant at of regression. The value of R2 statistic indicates that the model fitting insinuates factory condition. The coefficient of education al expenditures in primary and secondary is positive and is 17 and 21 percent. Respectively. Also the coefficient of capital stock and labor force is positive and significant and is equal to 42 and 27 percent respectively. So we can say that the impact of economic reform policies imitated by the government during that period improved the poverty situation in Iran, this must be by education. We can say that the impact of economic reform policies initiated by the government during that period improved the education situation in Iran and according to the finding s of this paper economic growth is good for poor people.

Keywords

investment education and training; Human Capital; Economic Growth; developing countries

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