engleski

THE CONNECTION BETWEEN INVESTING IN EDUCATION AND ECONOMIC DEVELOPMENT

Investing in education i.e. the development of human capital and developing a quality education system is a prerequisite for the growth and development of any country. Education, as one of the most important factors in economic growth, and the correlation between economic growth and education are some of the most important areas in economic research. The question this paper asks is – can investments into education start economic growth and see a positive correlation between investing into education and economic growth. The aim of this paper is to show the correlation between economic growth and a percentage investment of GDP into education, as well as to compare the differences between investing into education in more and less developed countries of the European Union. The research was done on the EU-27 member-states, with a special emphasis being put on the Republic of Croatia, as well as the investment into education according to education levels. The human development index (HDI) and the Gross Domestic Product per capita (GDP p.c.) were taken into account when measuring the development of a country. The aim of this research was to show whether there is a positive correlation between investments into education and economic growth.

Economic development, GDP p.c., Human development index (HDI)

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