The Role of Education in the Development of Human Capitaland his Effect of Education on Societal Economic Growth

Abstract

This study investigates the problematic relationship between education and economic development, and explores the various dimensions linking education to human capital. To this end, the study provides a definition of human capital and emphasizes the role of education in its formation. It then examines the issue of educational investment in the economic field, drawing insights from global developmental experiences. The study focuses particularly on the empirical determinants of education’s impact on economic returns, especially the influence of human capital on individuals’ and graduates’ material income. Furthermore, it discusses the broader impact of education on the economic growth of human societies. The study ultimately concludes that education plays a significant role in both economic and social development, and that investment in human capital constitutes the most effective and valuable form of economic investment. This effect is clearly reflected in global development models such as the Japanese experience and the economic progress of the Asian Tigers