TAILIEUCHUNG - The Impact of Education on Economic Growth Theory, Findings, and Policy Implications

An option of longstanding interest is prevention—interventions that prevent or delay the occurrence of the very diseases that drive these costs. There are three kinds of prevention. Primary prevention can be accomplished by modifying unhealthy behaviors (., smoking, physical inactivity), which cause many diseases and account for 38% of all deaths in the United States, 6 administering immunizations to prevent infectious diseases, and reducing exposure to harmful environmental factors. Secondary prevention can reduce the severity of diseases, such as cancer and heart disease, through screening programs that detect the diseases or their risk factors at early stages, before they. | The Impact of Education on Economic Growth Theory Findings and Policy Implications Brian G. Dahlin Duke University I. Introduction In June of 2002 President Bush announced a doubling of funds for the African Education Initiative. Total . spending on basic education in Africa will total 630 million over the next five years. Motivation for such an increase lies in the belief that the education of children in developing countries is key to future economic growth and lasting democracy leading to greater stability and improved standards of living. 1 Many growth models include education and offer predictions as to the implications of education policy changes on macroeconomic performance. Some empirical analyses of the growth rate of real per capita GDP in the . suggest that years of secondary and higher schooling contribute positively toward economic Such research is of particular importance as developed nations continue taking a more active role in the development of third-world nations as growth models offer predictions useful in aiding policy decisions. 1 Office of the Press Secretary The White House. June 2002 . Fact Sheet Africa Education Initiative. http news releases 2002 06 2 Barro Robert J. and Sala-i-Martin Xavier. 1995 . Economic Growth. McGraw-Hill New York. pp. 424432. 2 II. Objective The goal of this paper is to survey the literature on education and its effects on economic growth. Over the last several decades there have been a number of new developments and findings on this subject in both the micro and macro literature. Several recent models with policy implications are discussed. Where possible we link the policy implications to growth-related issues faced by developing countries. Throughout this survey of the literature we present mathematical concepts in a way that is accessible to less technical readers. III. Overview Economics offers a variety of theories and models relating education to economic .

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