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Return on investment in education. Case study on education in Romania

Author

Listed:
  • Pribac Loredana Ioana

    (“Vasile Goldis” Western University of Arad)

  • Anghelina Andrei

    (“Vasile Goldis” Western University of Arad)

  • Blaga Radu Lucian

    (“Vasile Goldis” Western University of Arad)

Abstract

The aim of this study is to develop, test and validate based on a conceptual research model, the influence of education on the GDP/capita, starting from relevant theories and empirical models from literature or implementing additional impact models and variables. Building on the model developed by Mincer (1995) on the yield rates of investment in education, we applied econometric models for Romania, for the period 1960-2010. The results led to a main conclusion, namely, the importance of investment in education is undeniable, it has positive effect on the economic growth of Romania.

Suggested Citation

  • Pribac Loredana Ioana & Anghelina Andrei & Blaga Radu Lucian, 2016. "Return on investment in education. Case study on education in Romania," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(1), pages 26-39, March.
    • Handle: RePEc:vrs:suvges:v:26:y:2016:i:1:p:26-39:n:3
    DOI: 10.1515/sues-2016-0003
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    References listed on IDEAS

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    3. Philip Stevens & Martin Weale, 2004. "Education and Economic Growth," Chapters, in: Geraint Johnes & Jill Johnes (ed.), International Handbook on the Economics of Education, chapter 4, Edward Elgar Publishing.
    4. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
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    6. Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
    7. World Bank, 2012. "Putting Higher Education to Work : Skills and Research for Growth in East Asia," World Bank Publications - Books, The World Bank Group, number 2364.
    8. Greiner, Alfred & Semmler, Willi, 2002. "Externalities of investment, education and economic growth," Economic Modelling, Elsevier, vol. 19(5), pages 709-724, November.
    9. Andren, Daniela & Earle, John S. & Sapatoru, Dana, 2005. "The wage effects of schooling under socialism and in transition: Evidence from Romania, 1950-2000," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 300-323, June.
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    Cited by:

    1. Blaga Radu Lucian & Blaga Alexandru, 2016. "Price Determination for Educational Services Based on the Investments in Education," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(4), pages 78-93, November.
    2. Adekoya Adenuga Fabian & Razak Nor Azam Abdul, 2016. "The Link Between Economic Growth, Crime and Deterrence Measures in Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 26(4), pages 24-40, November.
    3. Maricica-Dănuta Bîtcă (Bunghez) & Gicu-Valentin Dogaru & Razvan-Ion Chitescu, 2020. "Reform of Public Education System in Romania," Book chapters-LUMEN Proceedings, in: Marcin Waldemar STANIEWSKI & Valentina VASILE & Adriana Grigorescu (ed.), International Conference Innovative Business Management & Global Entrepreneurship (IBMAGE 2020), edition 1, volume 14, chapter 27, pages 369-379, Editura Lumen.

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    More about this item

    Keywords

    education; human capital; returns; investment in education; I25; O4;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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