EDUCATION AND ECONOMIC GROWTH OF THE WESTERN BALKANS COUNTRIES

Abstract

Numerous theoretical and empiric studies investigate
the correlation between education
and
human capital and economic development.
Full affirmation of knowledge
and the role of education
in stimulating
economic growth were provided by endogenous
theory. The subject of this paper
is
to analyse the correlation
between education
and educational system and the economic
growth of
the Western Balkans countries
(WB). The hypothesis of this work
says that: education and educational
system
in the WB affect the growth of GDP per capita. A better education system
stimulates
and accelerates the economic growth
and development. The aim of this research
is to prove that
an optimal education system
stimulates the growth and development
in each observed national
economy.
In this paper, the results of the correlation
analysis indicate high compliance
of higher
education with GDP per capita
i.e. higher education population is particularly
important for the
level of development
whereas there is a highly compliant but inverse relation of the population with
informal
level of education and economic development in the WB countries.