Identification of Educational Externalities. The Importance of Investing in Human Capital
Identification of Educational Externalities. The Importance of Investing in Human Capital

Summary/Abstract: The approach to education in our research is based on the contributions made to the formation of human capital, social capital and externalities, capable of boosting the economic growth of countries. Investing in human capital by increasing the level of training and quality is what economists today call investment in education, because in the past, many economists believed that only investing in factories and machines contributed to economic growth. The value of education is increasingly recognized, which is no longer considered a cost, but a long-term investment, as long as it is recovered. Investing in education will generate income for the economy, for businesses and for individual workers. The article studies education as a key ingredient in the process of creating human capital, concluding that it is a precondition for future economic development, but at the same time a consequence of previous economic development, as raising the standard of living as economic growth continues and the increasingly complex social and economic environment is leading to an increase in demand for adequate human capital.

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