The Role of Education in the Dynamics of Economic Growth: A Literature Review

Abstract

This article summarizes the interactions between education and economic growth, based on a comprehensive analysis of contributions from the existing theoretical literature. The review is based on a limited number of studies considered the most important, carefully selected to reflect the major contributions of research in this field. It emphasizes the function of education as a determining factor in the accumulation of human capital and the development of individual productivity (Becker, 1964; Mincer, 1974) and as an individual investment that generates social returns and drives the dynamics of growth and development at the collective level, essential for economic and social progress (Lucas, 1988; Romer, 1990; Barro, 1991). The review of studies reveals that education has a positive effect on growth, while other research fails to establish a significant link and suggests a negative impact.

However, the question of the link between education and economic growth remains open. It continues to spark extensive debate and still offers many possibilities for both theoretical and empirical research.

JEL Classification: I25, O15, O41

Paper Type: Theretical Research