Impact of Education on Economic Development
DOI:
https://doi.org/10.15575/kp.v5i1.25199Keywords:
Level of education, Productivity, Work force, Wage rate, Development, Human capitalAbstract
Education is widely acknowledged as the most important tool for socioeconomic development in a country. It catalyzes boosting productivity and promoting technological advancements. There is a clear positive relationship between education levels and stages of economic growth. As the population's education level improves, it opens up and expands various sectors of the economy, including secondary, tertiary, and quaternary sectors, leading to increased job opportunities and contributing to the overall size of the country's gross domestic product. Qualitative research methods were employed in this study to uncover the impact of education on economic development, with a specific focus on the agriculture, manufacturing, and earnings sectors. The study explored the intricate connections between education and these sectors through document analysis, and observations. The findings highlighted the transformative power of education in driving sustainable and inclusive economic progress. Education also plays a pivotal role in uplifting agricultural and industrial productivity by adopting modern inputs and technology, resulting in higher wages for the workforce. Educated individuals tend to earn more, invest in their family's well-being and healthcare, and enjoy longer lives, thereby fostering societal development. This paper contributes to the existing body of knowledge by comprehensively understanding how education influences economic development, particularly in the agriculture, manufacturing, and earnings sectors. It underscores the importance of education as a driver of sustainable and inclusive growth, emphasizing the need for continued investment in education to ensure long-term socioeconomic progress.References
Aldosari, F., Al Shunaifi, M. S., Ullah, M. A., Muddassir, M., & Noor, M. A. (2019). Farmers’ perceptions regarding the use of information and communication technology (ICT) in Khyber Pakhtunkhwa, Northern Pakistan. Journal of the Saudi Society of Agricultural Sciences, 18(2), 211–217.
Antle, J. M., Basso, B., Conant, R. T., Godfray, H. C. J., Jones, J. W., Herrero, M., Howitt, R. E., Keating, B. A., Munoz-Carpena, R., &
Rosenzweig, C. (2017). Towards a new generation of agricultural system data, models and knowledge products: Design and improvement. Agricultural Systems, 155, 255–268.
Antwi-Agyei, P., & Stringer, L. C. (2021). Improving the effectiveness of agricultural extension services in supporting farmers to adapt to climate change: Insights from northeastern Ghana. Climate Risk Management, 32, 100304.
Appiah, E. N. (2017). The effect of education expenditure on per capita GDP in developing countries. International Journal of Economics and Finance, 9(10), 136–144.
Asadullah, M. N., & Rahman, S. (2009). Farm productivity and efficiency in rural Bangladesh: the role of education revisited. Applied Economics, 41(1), 17–33.
Cubas, G., Ravikumar, B., & Ventura, G. (2016). Talent, labor quality, and economic development. Review of Economic Dynamics, 21, 160–181.
Dension, E. F. (1962). The sources of economic growth in the united states and the alternatives before us. Committee for Economic development.
Dziechciarz, J. Z. (2015). Measurement of Rate of Return in Education. Research Directions. Proceedings of FIKUSZ, 39–56.
Fabregas, R., Kremer, M., & Schilbach, F. (2019). Realizing the potential of digital development: The case of agricultural advice. Science, 366(6471), eaay3038.
Habib, M., Abbas, J., & Noman, R. (2019). Are human capital, intellectual property rights, and research and development expenditures really important for total factor productivity? An empirical analysis. International Journal of Social Economics, 46(6), 756–774.
Hanushek, E. A., Wößmann, L., & Machin, S. J. (2023). Handbook of the economics of education. Elsevier.
Hodge, S., & Smith, R. (2019). Innovation and VET student work placement. Journal of Vocational Education & Training, 71(4), 519–537.
IIASA. (2008). Economic Growth in Developing Countries: Education Proves Key, Policy Brief #3. http://www.iiasa.ac.at/web/home/resources/publications/IIASAPolicyBriefs/pb03-web.pdf
Kuzminov, Y., Sorokin, P., & Froumin, I. (2019). Generic and specific skills as components of human capital: New challenges for education theory and practice. ФорÑайт, 13(2 (eng)), 19–41.
Magar, S. T., Timsina, J., Devkota, K. P., Weili, L., & Rajbhandari, N. (2022). Conservation agriculture for increasing productivity, profitability and water productivity in rice-wheat system of the Eastern Gangetic Plain. Environmental Challenges, 7, 100468.
Mensah, O., Jincai, Z., Hua, C., Wang, C., Udimal, T., Yin, J., & Cong, C. (2017). Chinese agricultural sector: a review of prospects and challenges. Journal of Agriculture and Ecology Research International, 11(4), 1–12.
Mochizuki, Y., & Bryan, A. (2015). Climate change education in the context of education for sustainable development: Rationale and principles. Journal of Education for Sustainable Development, 9(1), 4–26.
Mwaura, F. (2014). Effect of farmer group membership on agricultural technology adoption and crop productivity in Uganda. African Crop Science Journal, 22, 917–927.
Nelson, R. R., & Phelps, E. S. (1966). Investment in humans, technological diffusion, and economic growth. The American Economic Review, 56(1/2), 69–75.
Paltasingh, K. R., & Goyari, P. (2018). Impact of farmer education on farm productivity under varying technologies: case of paddy growers in India. Agricultural and Food Economics, 6, 1–19.
Panda, S. (2015). Farmer education and household agricultural income in rural India. International Journal of Social Economics.
Pivoto, D., Waquil, P. D., Talamini, E., Finocchio, C. P. S., Dalla Corte, V. F., & de Vargas Mores, G. (2018). Scientific development of smart farming technologies and their application in Brazil. Information Processing in Agriculture, 5(1), 21–32.
Porter, M. E., & Kramer, M. R. (2018). Creating shared value: How to reinvent capitalism—And unleash a wave of innovation and growth. In Managing sustainable business: An executive education case and textbook (pp. 323–346). Springer.
Salvioni, C., Henke, R., & Vanni, F. (2020). The impact of non-agricultural diversification on financial performance: Evidence from family farms in Italy. Sustainability, 12(2), 486.
Schiliro, D. (2017). A glance at Solow’s growth theory. Journal of Mathematical Economics and Finance, 3(2 (5)), 83–103.
Senger, I., Borges, J. A. R., & Machado, J. A. D. (2017). Using the theory of planned behavior to understand the intention of small farmers in diversifying their agricultural production. Journal of Rural Studies, 49, 32–40.
Srisopaporn, S., Jourdain, D., Perret, S. R., & Shivakoti, G. (2015). Adoption and continued participation in a public Good Agricultural Practices program: The case of rice farmers in the Central Plains of Thailand. Technological Forecasting and Social Change, 96, 242–253.
Teixeira, A. A. C., & Queirós, A. S. S. (2016). Economic growth, human capital and structural change: A dynamic panel data analysis. Research Policy, 45(8), 1636–1648.
UNESCO. (2012). UNESCO Global Monitoring Report. http://unesdoc.unesco.org/images/0021/002180/218003e.pd
Valente, A. C., Salavisa, I., & Lagoa, S. (2016). Work-based cognitive skills and economic performance in Europe. European Journal of Innovation Management, 19(3), 383–405.
Weir, S., & Knight, J. (2004). Externality effects of education: dynamics of the adoption and diffusion of an innovation in rural Ethiopia. Economic Development and Cultural Change, 53(1), 93–113.
Woessmann, L. (2016). The economic case for education. Education Economics, 24(1), 3–32.
World Economic Forum. (2016). World Economic Forum (2016) Global Competitiveness Report 2015-2016. WEF. http://reports.weforum.org/global-competitiveness-report-2015-2016/education/#view/fn-53
Yıldırım, A., & Gökalp, M. F. (2016). Institutions and economic performance: A review on the developing countries. Procedia Economics and Finance, 38, 347–359.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
- Authors retain the copyright and full publishing rights without restrictions