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Applied Finance 2011/2012 Research Project - Essay Example

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Applied Finance 2011/2012 Research Project

In the similar manner, United Kingdom has been able to use its education system to contribute towards the economic growth and development1. At the same time Machin and Vignoles (2005), have presented the concept that there is direct relationship between the education and the economic advantages of the country. The education is perceived to be as an investment which has different returns. Education has a direct influence on the wages or earnings of an individual as with higher education an individual would be able to better analyse as well as capitalise different opportunities2 and therefore with more earnings or salaries of an individual, he or she would spend more money and all this would influence the economy of the country or GDP in a positive manner. According to Stevens & Weale (2003) education can be considered and analysed as an investment decision and the higher the investment has been made on the education, the better would be the product and therefore the more he or she would be able to earn3. Similarly, if this situation can be considered for the whole of the society and if the spending on education of whole of the society has been increased, then logically it should improve the earnings of everyone in the society and as a result of this, the economic condition of the country should improve. Education is an important factor for the individual as well as of whole society. The main purpose for the government to spend in the education sector is to improve the well-being of the people or living standards of the people living in the society. Sluis, Praag and Vijverberg (2005) have concluded that with higher education in the country, the chances of young graduates starting their own venture are high4. RESEARCH QUESTIONS: The research questions which will be tried to answer by the researcher are as follow: 1. What is the impact of tertiary education on the economic growth of United Kingdom? 2. How the government policies regarding development of education infrastructure can influence the economic growth? MOTIVATION: The motivation or rationale behind this research study is to analyse the impact of education on the economic growth. The researcher, being a student, is interested in exploring the implications of education on the society and economy. This in turn will allow the researcher to understand and comprehend the importance of education, not only for the person who is acquiring education but also for the whole society and nation. This research study will be beneficial for different educational institutions and policy makers, as they will be able to come up with more effective and efficient educational strategies and policies keeping in mind the end result. DATA AND METHODOLOGY: The research study will use time series data in order to find answers to the research questions. For this purpose, the data for important economic variables will be collected through the databank of the World Bank along with the websites of UNESCO and Pennworld. The neo-classical growth theories will be used as the basic theoretical framework for the research study. For this purpose, the regression equation will be formed with the help of the Solow Swan growth model. The researcher will use some important economic variables for this research. The dependent variable in this regard will be GDP per capita, which will try to represent the economic growth of the country. On the other hand five independent variable will be used which are: 1. Private Investment ...Show more

Summary

INTRODUCTION: There has been an increasing emphasis on the role of education in the process of economic growth and development. Different researchers and analysts have been trying to find out the impact of education on the economic growth of the particular country…
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Applied Finance 2011/2012 Research Project essay example
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