INTRODUCTION The main purpose of this thesis is to demonstrate the role of education in economic growth and development of nations and the effect of primary, secondary, higher overall any kind of education on labor productivity, poverty rate, international trade, efficient technology, health, income distribution and family structure. Education is basis for economic growth and development, the groundwork on which much of our social and economic prosperity is built. It is the key to increasing economic productivity and social consistency. By increasing the efficiency and value of labor force, it helps to fight with poverty. It boost the overall productivity and intellect of the labor force.
This process allows for newer, more innovative ideas to be adopted and adapted within a business environment for newer products, services, methods of production, and overall productivity to be improved. According to Toma. S. and Grigore, A. and Marinescu, P. (2014) “Several dynamic forces, such as technological disruption, fluctuating economies or demographical changes, have brought new opportunities and threats for organizations, and transformed societies from all over the world.” Factors that affect entrepreneurship, according to Farouk, A. and Ikram, A. (2014) include “motivational, the need for achievement, the need for autonomy, a passion to develop its own idea, individual characteristics, work experience, and teaching.” These factors will have an effect on the opportunities presented to an entrepreneur, as well as how effectively the entrepreneur can act upon these
Investing in education increases human capital per worker. • It is about enhancing the degree to which schooling facilitates the acquisition of professional skills and fosters cognitive skills that foster development. • It is about increasing the innovative capacity of the economy – knowledge of new technologies, products, and processes that promotes
Apart from being a worker, immigrants also play the roles of job creators, taxpayer and consumers. As a consumer, immigrants spend or invest their money in residence and daily necessity which in turn create new jobs and increase the demand for labor. On the other hand, the skills and experience of immigrants and foreigners are required in order to form an open, innovative, and exporting economy (Vince, 2014). Immigrants, who have various kinds of backgrounds and cultures, are beneficial assets for creating original and unique ideas. By establishing new jobs and starting new business, the rising demand of labor and a steady development in the economy could be expected.
As the rapid growth rate of economic environment in current world market, economic globalization is affecting emerging countries economic development by increasing oversea business activities such as FDI, export-import, also the culture communication between different countries are interacting and influencing each other during diplomatic business activities. The globalization also simulates innovation and creativity in the emerging countries; it encourages the spirits of entrepreneurship and drives the emergence of innovative business models. China as one of the fastest growing countries in efficiency-driven economy system, where economic growths are based upon manufacturing in domestic markets, outsourcing, and exporting products to foreign
Entrepreneurial education is considered central to the economic development of nations (Kabongo & Okpara, 2010). Entrepreneurship education has to increase entrepreneurial self-efficacy, self-employment, and risk-taking attitude of the entrepreneur (Cheng & Chan, 2009). Entrepreneurship education creates enormous business opportunities and trains people with innovative enterprise skills to grasp the opportunities for starting new entrepreneurial activities (Cheng & Chan, 2009). Entrepreneurship education is one way of addressing poverty reduction, as there is strong empirical evidence suggesting that economic growth over time is necessary for poverty reduction. Entrepreneurship boosts economic growth, enhances educational attainment and increases the rate of economic growth (Mitra & Abubakar, 2011).
The positive relationship between economic development and literacy levels and the impact of investment in education on economic growth are well established. The transiting of the world towards a knowledge based economy is adding to the importance of human resources in general, and of education in particular. Human resources are poised to commend an increasingly important role in the balance of world economics and, hence, political power. Literacy is linked to economic success as literacy levels help determines the kind of jobs people find, the salaries they make and their ability to upgrade their work skills. It is a big factor in the economic success of a
(Nebojša Zakić, 2008) Product innovation may increase companies ' knowledge inventory while its contribution to company outcome which can be determined by sales and profits, new products/ services and also by changes in market share. Besides that, product innovation contributes in reducing production costs and time of production process and that leads to an increase in investment returns and production efficiency. It contributes also in improving products quality and makes products more competitive in home and external
Higher education may not be fruitful all the way without inducing R&D environment. The importance of R&D is understood as also endorsed by endogenous economic growth theory and knowledge based economy phenomenon. The contribution of R&D in economic growth of a country is manifested mainly by developed countries while developing countries are trying hard to groom in innovative products and services through investment in R&D for sustainable economic growth. R&D, innovation and knowledge workers are elementary indicators for the economic growth by becoming knowledge based economy (Raspe & Van Oort,
Human Capital Development Human capital development refers to the development of the skills and knowledge of the labour force in the economy. Investment in human capital by spending more funds to education and training is an important key to open the door of the developed economies. As human capital development provides important skills and knowledge to ensure the good productivity and efficiency in the economy. 3.3.4. Providing Incentive Providing incentive refers to government providing incentive to individuals to encourage them to set up their own business or encourage small business to expand.