The Role Education in Economic Development

One of the most important factors which determine economic, social and political development level of countries is education. Besides education provides to people special benefits, education has an important role in economic development of countries because it creates externalities from the point of view social aspect. Poverty of skilled labor is overcome and scientific and technologic innovations gain speed when training level of people goes up. As the result of labor productivity raises, level of national income increases rapidly and created income is distributed more fairly. Return speed of investments in education are higher than return speed of investments in physical capital because of administration becomes more democratic, providing economic and political stability gets easier and criminal rates decreases in communities that education level increased. Because the expenditures, related to education, create remaining yield as investment expenditures in the long term, make economic development gain speed. In this study, education had what an evolution period in economic thought system and why investments in education are important from view of economic were explained. The role of education in economic development was analyzed by describing the theories on subject of economic role of education.