Education&saving relation: The case of turkey

In the last century, concepts such as human development and economic growth have come to the forefront while evaluating the long-term and sustainable development of the country's economy. Education is one of the most important criteria in the concept of human development. Although Turkey has recovered more rapidly than the education we had in the past, Turkey is located below the average of other countries in terms of education among the countries in its income group. The education system in Turkey has significant problems and shortcomings. In countries with better-educated human capital as a result of improvements in education, per capita income also rises in parallel with the increase in total production. The increase in revenues allows individuals to save more, as well as consumption expenditures; which in turn contributes to increased investment and leads to increased productivity. Turkey faces savings, current account and investment deficits resulting from low savings rates. The main purpose of this thesis is to evaluate the relation between education and savings in Turkey. The hypothesis of "There is a relationship between education and saving in Turkey" examined by means of an empirical model, using data from Turkey between 1975-2013 and various econometric methods. Findings obtained as a result of the research show the existence of a positive relationship between education and savings in long term and a relation towards education savings in Turkey. In the short run, the existence of such a relation was not found.