Publisher's Synopsis
How outsourcing education strategy influenceseconomy development to Asia countriesAny countries have two different channels through which human capital can affect long run economic growth by education provision. The first channel is when human capital is a direct input in the production function and the second channel is when the human capital affects the technology parameter. The result establishes a long run relationship between education and economic growth. A well educated labour force appears to significantly influence economic growth both as a factor in the production function and through total factor productivity. With its large resources of human and natural resources, the potential to build a prosperous economy to reduce poverty significantly and to provide the health, education services that its population needs. As the Asia developing countries, e.g. China or Korea, which are poor countries past years, which need foreign investors' different businesses development in their countries. So, themselves education is commonly regarded as the most direct avenue to rescue a substantial number of people out of poverty since there is likely to be more employment opportunities and higher wages for skilled workers. Furthermore, education can enable children's attitudes and assists them to grow up with social values that are more benefitical to their nations and themselves.The theoretical basis of education on economic growth is rooted in the endogenous growth theory. Endogenous growth economists believe that improvements in productivity can be linked to a faster pace of innovation and extra investment in human capital. Engogenous growth theorists argue the need for government and private sector institutions and markets which need to innovate and provide incentives for individuals to be inventive. There is also a central role for knowledge as a determinant of economic growth theory can predict positive externalities and spill over effects from development of a high valued-added knowledge economy which is able to develop and maintain a competitive advantage in growth industries in the global economy.Nowadays, education at levels countries to economic growth through imparting general attitudes and discipline and special skills necessary for a variety of work places. It contirbutes to economic growth by improving health, reducing fertility and possibly by contributing to political stability to different developing or developed both countries. The major importance of the educational system to any labor market would depend majority in ability to produce a literate, disciplines, flexible labor force via high quality education. Consequently, with economic development new technology is applied to production with results in an increase in the demand for workers and better education. In the developing countries, e.g. China, Korea, rich individuals allocate labor time not only for their own production and knowledge accumulation, but also train the poor individuals. In the past, some economists estimated a model of economic growth and human capital accumulation based on a sample of developing countries, e.g. China, Korea etc. are not a different stage of development. Their result revealed that the increase in the primary and secondary countries to an increase in productivity. They indicate that human capital acccumulation rates are affected by demographic variables. For example, they established that an increase in life expectancy at birth brings about an increase in secondary and tertiary education when a decrease in the dependence rate negatively affects secondary education. Finally, they added that geographic variables have a considerable importance in the human capital accumulation process. Nevertheless, studies differed on the impact of human capital on productivity.
