The Effect of Education on GDP Growth: Present Phenomenon, Potential Impact, and Future Implications

This research investigates the impact of education expenditure, labor force and literary rates on economic growth, measured by GDP per capita. Using panel data from a cross-country level covering 267 nations and regions, the study examines how human capital influence growth. The analysis reveals that education expenditure is highly associated with GDP per capita through all country groups, especially for non-OECD and developing countries, where institutional and educational systems are not that strong compared to advanced economies. Literary rates show positive relationships with more obvious in advanced economies. The finding emphasizes the crucial role of human capital in the economy field. And it should boost nations development: investment in education contributes growth on economy and fosters workforce quality and productivity for the country.