This document discusses the relationship between education and economic development. It defines economic development as the adoption of new technologies and transition to a knowledge-based economy. Indicators of development include reduced poverty, expanded middle class, and increased life expectancy. Studies cited show education expenditures and human capital development are positively correlated with economic growth. Higher education leads to greater job and income opportunities as well as safer, more positive communities. Family beliefs and income also influence children's educational attainment. Countries with higher education budgets and enrollment rates experience faster income growth. Education enhances productivity and is more durable than physical wealth.

1. By:Yous Reaksmey
Soeur Sreypov
Hun Penglong
Voeuk Roda
Kheav Dalin

2. 96.71 million (2012) 299,404 Km2

3. Contents:
 What is Economic development?
 Indicators of economic development.
 Linkage of education and Economic development.
 Higher Education and better Life.
 Family beliefs in Education.
 Comparative Budget allocation for Education.
 References.

4. What does Economic development mean?
• Economic development usually refers to the adoption of new
technologies, transition from agriculture based economy to
knowledge-based economy, and general improvement in living
standards.

6. Indicators of Economic Development
 Elevation of people below poverty line.
 Expansion of Middle class.
 Increase in per capita income.
 Increase in life expectancy.
 Low mortality rate.
 Industrial expansion.
 Mechanized farming.

7. How does Education effect the
Development of Economy
• Barro (1991) find a positive relationship between education
expenditures and economic growth “Economic Growth in a Cross-section of
Countries.”
• Benhabib and Spiegel, (1994) acknowlege the human capital
development as a source of economic growth. “The Role of Human Capital
in Economic Development.”
•
Gemmell (1996) determine that, both human capital and their growth
rates as main determinants of economic growth. “Evaluating the Impact of
Human capital Stocks and Accumulation on economic Growth.”
According to Bills and Klenow, (2000), “Countries having high rate of
enrollment in schools made faster growth in per capita income
because high enrollment rate causes rapid improvement on
productivity.” “Does Schooling cause growth?”
• Hanushekand Kimko (2000) show that quality of education have a
remarkable impact on productivity and national growth rates.
•
“Schooling, labour force quality, and the growth of nations.”

8. Higher education leads to a better life
 College graduates on average will earn over a million
dollars more in their lifetime than high school graduates.
 Graduates have greater job opportunities
 More disposable income.
 Higher educated communities:
 Are safer
 View the world more positively
 Are less dependent on government assistance.

9. Importance of Family Belief in Higher
Education
 Education patents provide more resources and have higher
expectations for their children‟s education.
 The higher the family income, the more likely of degree
attainment by the children.
 It is not “If you go to college”, it is “When you go to college”.

10. Comparative Budget allocation
 Education budget of USA for 2012 was 69.9 Billions $.
• Education budget of China for 2012 was 54.68 Billions $.
• Education budget of Philippine for 2013 was 6 Billions $.
• Education budget of Cambodia for 2011 was 251Millions $.

11.  Barro, R.J. (1991) „Economic Growth in a Cross-section of
Counties‟, Quarterly Journal of Economies, Vol.106, pp.407-443
 Benhabib, J. and Spiege, M. (1994) „The Role of Human Capital
in Economic Development: Evidence from Aggregate CrossCountry Data‟, Journal of Monetary Economics, Vol,34, No.2,
pp.143-173
 Gemmell, N (1996) Evaluating the Impact of Human Capital
Stock and Accumulation on Economic Growth: Some New
Evidence, Oxford Bulletin of Economics and Statistics, Vol,58,
pp.9-28
 Bills, M and Klenow (2000) „Does Schooling Cause Growth?‟,
American Economic Review, Vol.90, pp.1160-1183
 Hanushek, E.A. and Kimko, D.D. (2000) „Schooling, labour force
quality, and the growth of nation‟, American Economic Review,
Vol.90, No.5, pp.1184-1208

12.  Education is harder to steal (and there fore also to
tax) than physical wealth…
 “If a man empties his purse into his head, no one
can take it from him.”
Brain’s Education Blog