Role of Education on Economic Growth: the Quality and Quantity Measures

Over the years most of the countries in the world have been faced with several socio-economic problems that have retard rapid economic growth. In an attempt to find a permanent solution to this problem studies have shown that the educational sector of every country is a leading instrument for promoting economic growth. The study analyses the role of the quality and quantity of education in promoting economic growth. The study further examines this impact on economic growth using the generalized least square (GLS) panel regression techniques and using annual data for 2000, 2003, 2006, 2009, and 2012 for 23 OECD member countries. The findings show that both government expenditure, school attainment and the quality of education measured by the PISA test scores has significant effects on economic growth. This study recommends that both the public and private sector should collectively revamp the education sector through increase in capital expenditure on education, and a good salary scheme and other incentives should implement to motivate teachers performance, as teachers have a significant role to play in improving the performance of the student. Keyword: Economic growth, Education, High School Enrollment, Gross Domestic Product per Capita, Government Expenditure, and PISA test score.