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ISSN - 2250 - 1991Volume : 1 Issue : 5 May 2012` 200
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INDEXSr. No. Title Author Subject Page No.
1 Convergence of India Gaap with International GAAP / IFRS
Prof. Kalola Rimaben A. Accountancy 1-3
2 Global Scenario of Business Ethics With Corporate Governance
Prof. Dr.Kishor V. Bhesaniya
Accountancy 4-6
3 VAT & ACCOUNTING Miss. Mira J. Bhanderi Accountancy 7-8
4 Carbon Trading: An Emerging Business Dr. Basanta Khamrui, Dilip Kumar Karak
Commerce 9-11
5 Developments in Indian Non Life Insurance Industry Ms.Kiran Sood, Ms.Supriya Tandon
Commerce 12-14
6 Parameters And Costs Influencing Transportation Decisions In Small Manufacturing Firms
Vipul Chalotra,Prof Neetu Andotra
Commerce 15-17
7 Foreign Trade Policy of India (2009-14) Dr. M. K. MARU Commerce 18-20
8 “A Comparative Analysis on Profitability of Selected Petroleum Industries”
Dr. Ramesh A. Dangar Commerce 21-23
9 An Empirical study on Consumer Awareness on Internet Banking in Gujarat
Dr. Vinod K. Ramani Commerce 24-26
10 Study of Factors Affecting HNIs’ Preferences for their Banks in South Mumbai Area
Shri. Arvind A. Dhond Commerce 27-31
11 Promotion mix straregy of jammu and kashmir co-operatives supply and marketing federation limited in jammu district of J&K state
Tarsem Lal Commerce 32-35
12 Intelligent Brain Tumor Tissue Segmentation from Magnetic Resonance Image using forward and backward anisotropic diffusion
S.Nithya Roopa,P. Vasanthi Kumari
Computer Science
36-38
13 Share of Women in Total Family Income – A Two Group Discriminant Analysis
Dr.A.Shyamala Economics 39-41
14 Socio-Economic Evaluation of Shg’s in Bidar District of Karnataka
Dr.Sangappa V. Mamanshetty
Economics 42-44
15 The Development of Chemical and Petrochemicals Industry in Gujarat
Dr.D.G.Ganvit Economics 45-46
16 How Can Primary Teachers Help To Assist The Development Of Positive Self-Esteem In Students Through Their Ordinary Teaching Practice?
Jigar L. Dave Education 47-48
17 Primary Mission Of Colleges Jigar L. Dave Education 49
18 Effectiveness of Readers Theatre on English Reading Comprehension
Ramesh B. Sakhiya Education 50-51
19 The Role of a Computerized Package on EFL Students' Writing Skills
Abdallah Ahmad, Baniabdelrahman, Abdulaziz A. Abanomey
Education 52-57
20 The Use of Team Teaching and its Effect on Saudi EFL Students' English Proficiency
Abdallah Ahmad, Baniabdelrahman, Abdulaziz A. Abanomey
Education 58-63
21 Study and Development of Road Traffic Noise Model Bhavna K. SutharV. R. Gor, A. K. Patel
Engineering 64-66
22 Weather Forecast Using Artificial Neural Network Laxmikant Raskar, Rohit Waghchaure, Md. Danish Raza,Mayuresh Lande
Engineering 67-68
23 Pavement Subgrade Stabilisation with Rice Husk Ash Patil N. L.,Dr. Sanjay Sharma,Dr. Hemant Sood
Engineering 69-71
24 Study of Precipitation and Stream Flow Data- A Case Study of Kim Basin
Prashant A. Ramani Engineering 72-76
25 “Estimation of Revised Capacity for Deo Reservoir of Gujarat, India”
Hiral Shah,N. N. Borad, R. K. Jain
Engineering 77-79
26 Nanotechnology in Cellular Lightweight Concrete Mr. Nakul Shah, Prof. Jayeshkumar Pitroda
Engineering 80-82
27 Plate Load (Model) Test for Bearing Capacity of Layered Deposite
Patel Ankit D., B.R. Dalwadi
Engineering 83-85
28 Effect of Service Bridge on natural frequency of structurally coupled multistory building
Upadhyay Nishith H., Prof. A.N. Desai
Engineering 86-88
29 “Controling the Soil & Land Pollution in Sabarkantha District by Using an App Lication of Remote Sensing and Geographical Information System”
Gaurang J Patel,R.B Khasiya
Engineering 89-91
30 Control The Soil Erosion & Land Pollution By Flood Reduction in The Tapi River,Surat District, Gujarat, India.
Harshad M.Rajgor,K B Khasiya
Engineering 92-95
31 Methodology for managing irrigation canal system with optimum irrigation scheduling for Meshwo irrigation Scheme
Jitendrasinh D. Raol, Roshani A.Patel,Prof S.A.Trivedi
Engineering 96-98
32 Analyis of regional water supply scheme in rural areas (Case Study: Kutch)
Niketa Patel Engineering 99-103
33 Security For Near Field Communication in Cell Phone Biren M Patel, Vijay B Ghadhvi,Mr Ashish Kumar
Engineering 104-106
34 Heterogeneous Traffic Flow Simulation at Urban Roundabout using ‘VISSIM’
Dipti S. Thanki, Asst. Prof. Ashutosh K. Patel
Engineering 107-109
35 Planning of Facilities for Pedestrian Movement in Urban Area: A Case Study of Vadaj Circle, Ahmedabad
Hitesh A. Patel,Pinak. S. Ramanuj
Engineering 110-113
36 Planning for Non-Motorized Transportation Jignesh C.Prajapati, Prof. N.G.Raval
Engineering 114-116
37 Intersection Design for Pedestrians and Cyclist Jignesh C.Prajapati, Prof. N.G.Raval
Engineering 117-120
38 Theoretical Consideration for optimum irrigation scheduling for irrigation Scheme
Jitendrasinh D. Raol, Prof S.A.Trivedi
Engineering 121-124
39 Overall Equipment Effectiveness Measurement and Review of Total Productive Maintenance
Kadiya Pinjal, Navinchandra
Engineering 125-128
40 To Study the Effect Of Stiffness on the Expansion Joint of a Building Subjected to Earthquake Forces
M.D.SHAH, P. G. Patel Engineering 129-132
41 Side Friction and Side Friction Factor (FARIC) In Ahmedabad Road Link
Parmar Dushyant J, Asst. Prof. Ashutosh K. Patel
Engineering 133-134
42 Fiber Reinforced Selfcompacting Concrete Patel Nikunj R,Elizabeth George
Engineering 135-137
43 Modal Analysis of Helical Gear Purusharth J. Patel,D.A. Patel
Engineering 138-140
44 Impact Strength of Ternary Blended Steel fiber Reinforced concrete
Samir M. Gami., D.A.Sinha
Engineering 141-143
45 Identify issues of traffic movement at landside area & remedial measures
Samir P. Mulani,Prof- Naurdin Hajiani
Engineering 144-147
46 Identification of Truck Transportation Issues at a Junction: a case study of Sarkhej Area
Himanshu. B. Shrimali, Prof- Naurdin Hajiani
Engineering 148-152
47 Assessment of Vehicular Carbon Footprint and its Reduction Measures
Chintan Patel,Prof. H.K.Dave
Engineering 153-155
48 Study of Solar Air Heaters with Different Operating Configurations
Ajaypalsinh Gangasinh Barad
Engineering 156-158
49 Traffic Flow Characteristics on Roads of Small Urban Centre
Axay S. Shah,Dr. L.B.Zala
Engineering 159-162
50 Failure in tensile testing on single lap multi-fastener joint with bolted connection
Jagdish N.Prajapati, Dr.Rajula.k.Gujjar, Prof.M.M.Pomal
Engineering 163-167
51 Study Of Infiltration Capacity At Anjar, Kutch Ravi C Ahir, Sagar D Patel
Engineering 168-169
52 Comparison of Temperature-Base Methods For Calculating Reference Evapotranspiration With Standard Penman-Monteith Method
M.R.Popat, S.N.Chavda, B.H.Pandit
Engineering 170-172
53 Electronic customer relationship management: benefits and trend
Tanuja Nair Engineering 173-174
54 VIRTUAL CLASS ROOM USING MOBILE AD-HOC NETWORK
Gaurav Katariya, Yogesh Parkhe, Devendra Patil,Pawan Pawar
Engineering 175-176
55 PARKING EVALUATION: A CASE STUDY OF AMUL DAIRY ROAD ANAND
Jaydipsinh P. Chudasama, Dr. L.B.Zala
Engineering 177-180
56 ENERGY ANALYSIS OF SOLAR AIR HEATER BY USING DIFFERENT TYPES OF ABSORBER PLATES
Vivek B. Patel,Dr. L.B.Zala
Engineering 181-183
57 Effect of Aspect Ratio W/L ,Body Bias ,and supply Voltage (vDD) for NMOS & PMOS transistor.
Rubina Siddiqui, Angeeta Hirwe, Rahul Parulkar
Engineering 184-186
58 Spider diversity of Wan Wild life Sanctuary, Vidharbha , India.
Taktode N.M. Environment 187-188
59 The Initial Human Behavioural Response to Rapid On set Natural Disaster: Earthquake
S.S. Patil, K.L. Karkare, I.B. Ghorade
Environmental Science
189-190
60 Spatio-temporal Distribution of Surface Water for Irrigation in Satara District of Maharashtra: An Analytical Study
Pawar D. H., Jadhav K.R.
Geography 191-193
61 Nagarcha wadh v kushi bhumi upyog badal nanded-vaghan ek abhyas pahani
Prof. Mane Deshmukh R. S., Dr. S. B Rathod
Geography 194-196
62 Socio-Economic and Nutritional Status of Children with Mental Retardation
Dr. S. S. Vijayanchali Home Science 197-199
63 Motivating Employees under Adverse Conditions Dr Alpesh B Joshi Human Resource
200-202
64 “Strategic Human Resource Management” Dr. M. Venkatasubba Reddy, B. Swetha,S. Jaya Krishna
Human Resource Management
203-204
65 Identifying Crosscutting Concerns for Software Requirement Engineering
Velayutham Pavanasam, Chandrasekaran Subramaniam
Information Technology
205-207
66 Gate pass Automation with Image,Barcode reading and Biometrics
Sumant C. Murke,Tejas N. Athavale, Sangram A. Nalawade
Information Technology
208-210
67 Plight of Rape Victims With Special Reference to India Dr. Monica Narang, Richa Sabharwal
Law 211-212
68 Libraries: An Essential Tool for the Advancement of Knowledge Resources & Research in Recent Era
Dr. Umesh Patel Library Science 213-215
69 An Analytic Study of BA/BSc/BCA/BCom Part I General English Syllabus Prescribed by the University of Jammu
Dr. Wajahat Hussain Literature 216-217
70 A Study on Quality of Work Life Dr.N.Thenpandian Management 218-219
71 Best HR Practices Kavita Trivedi Management 220-221
72 A Study on Employee Retention Practices of Automobile Industry in INDIA
Dr.K.Balanaga Gurunathan, Ms. V.Vijayalakshmi
Management 222-224
73 A Study on Innovation for Organizational Excellence in Health Care Industry in a Private Multi-Speciality Organization
Dr. C. Swarnalatha,T.S. Prasanna
Management 225-227
74 “Performance measurement of Top 10 Mutual Funds with the help of Sharpe, Treynor & Jenson Model”
Monal Patel, Dr. Deepak H. Tekwani
Management 228-230
75 Strategic Expansion for Growth A Case Study on Codescape Consultants Pvt Ltd. (Infinite Possibilities)
Akshay Arora,Abhilansh Bhargava, Preeti Sharma
Management 231-232
76 Role Of Education In Innovation For Economic Development - A Case Study
Dr. Ananthapadhmanabha Achar
Management 233-238
77 ROLE OF HR PROFESSIONAL IN DEALING DISCIPLINARY PROCEEDINGS CONSTRUCTIVELY - AN OVERVIEW
C Santhanamani, Dr. N. Panchanatham
Management 239-241
78 Power of Advertising Supriya Tandon Management 242-244
79 Enhancing Employee Engagement: A Need of The Hour Urmila Vikas Patil Management 245-247
80 Role of E-Learning to Enhance Qualities of Physical Education Teachers and Coaches
Gohil Rajendrasinh K. Physical Education
248-250
81 “Eco – Environmental Study on Nutrient Removal Potential of Eichhornia Crassipes from Domestic Wastewater”
D. K. Patel, V. K. Kanungo
Science 251-253
82 Aphasia – a loss of linguistic faculty Dr Alpesh B Joshi Social Sciences 254-256
83 Workaholism – A Modern Day Nuisance Dr Alpesh B Joshi Social Sciences 257-258
84 Vartman me Dalit Varg ki Samasya Dr. H. L. Chavda Sociology 259-260
Volume : 1 | Issue : 5 | May 2012 ISSN - 2250-1991
PARIPEX - INDIAN JOURNAL OF RESEARCH X 233
Research Paper
* Professor and Director, Sahyadri college of Engineering and Management
Management
Role of Education In Innovation For Economic Development - A Case Study
* Dr. Ananthapadhmanabha Achar
Keywords : Knowledge , education economic Development
The structure and nature of the economic order in future will be increasingly influenced by market forces, which are mainly governed by knowledge, more specifically technological knowledge. In this technological era, even wealth is measured mainly in terms of knowledge-based systems. Intellectual property and human capital will be assuming lot of significance. Following the world trend of liberalization, privatisation and globalization, international interactions and co-operation would increase along with greater competition for resources like competent, committed, multi-skilled and flexible manpower. Along with regional and international cooperation, the competitive advantage of a nation will be determined mainly by the quality of human resources. Quality of human resource is determined by the output of the educational system. Therefore, education is all set to become the main instrument for development and transformation. Also, economic development, HRD, and education are mutually linked and reinforced to influence each other. Complex links among education, HRD and development have been analyzed variously. The direct relationship between schools and labour market is termed as the ‘external efficiency’ of education (Psasacharopoulos G, 1984). High level of external efficiency of education expects a perfect match between demand and supply of labour in the market, not only quantitatively but also qualitatively. Increase in demand for labour results from expansion of economic activities, which in turn, leads to economic development. Economic development would change the nature of education and bring out new knowledge. In recent years, new theories of growth have emphasised the importance of accumulation of knowledge in fostering technological change, and thus, achieving faster and more sustained economic growth. Today’s rapidly growing economies depend on the creation, acquisition, distribution, and use of knowledge The principal Institutional mechanism for developing knowledge is the formal education system. Education helps to generate new ideas, and also refines human behaviours and habits required for research and development (Ram Binod Singh, 2002).This research paper is a case study to explore the linkage between education and economic development. To explore the link between Education and Economic Development two case studies have been prepared: cases of Mauritius and Singapore. Out come of the study clearly shows that there is direct link between level of education and level of economic development
ABSTRACT
Introduction The concept of economic development has undergone a lot of change after realisation of the importance of environ-ment, technology and education. Literature on development economics mainly focuses on human welfare and sustain-able development, which are the building blocks of modern institutional economics. In these, human resource develop-ment (HRD) and human behaviour in general and economic behaviour in particular act as the key factors of human capital in a nation.
In the present knowledge based economy knowledge and knowledge creation constitutes the commanding element of all the economic development activity. Therefore, education system has gained the multiple role of providing strong re-source base and institutional frame for facilitating the welfare-oriented sustainable development.
In the competitive economy, economic order is constantly be-ing influenced by market forces, which are mainly governed by knowledge, more specifically technological knowledge. In this technological era, even wealth is measured mainly in terms of knowledge-based systems, and in this context, intellectual property and human capital will be assuming lot of significance. Following the world trend of liberalization, privatisation and globalization, international interactions and co-operation would increase demanding greater competition for resources like competent, committed, multi-skilled and flexible manpower. The competitive advantage of a nation will be determined mainly by the quality of human resources.
Quality of human resource is determined by the output of the educational system. Therefore, education is all set to become the main instrument for development and transformation of economic development. The present study explores the link-age between Education, Human Resource Development and Economic Development focusing on Singapore and Mauritius as case examples.
Objectives and methodsInfluence of knowledge producing industry on economic de-velopment has been well recognised in the various studies conducted in different part of the world. Hence, education system is in the centre of all factor networks of development.
An extensive review of literature suggests that no authorita-tive and comprehensive empirical study has so far been con-ducted on this theme. Hence, an effort is made to explore and understand role of educational institutions in innovation for economic development and assess the impact of education in Human Resource Development
The Study intends to answer the following research ques-tions:
(1) What are the major contribution of the educational Institu-tion in local economic development
(2) What is the impact of education on Human development and which in turn has an impact on employment.
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234 X PARIPEX - INDIAN JOURNAL OF RESEARCH
Research methodologyThis study is descriptive research. Data and information for the study is collected form the secondary source of informa-tion such as books, periodicals and websites for the purpose of understanding the key concepts and theories
Theoretical back groundComplex links among education, HRD and Economic devel-opment have been analyzed variously. The direct relationship between schools and labour market is termed as the ‘exter-nal efficiency’ of education (Psasacharopoulos G, 1984). High level of external efficiency of education expects a perfect match between demand and supply of labour in the market, not only quantitatively but also qualitatively. Increase in de-mand for labour results from expansion of economic activi-ties, which in turn, leads to economic development. Economic development would change the nature of education and bring out new knowledge.
Knowledge’ in Economic TheoryNow a days we live in a ‘knowledge society’ in which knowl-edge is the most important means of production, not capital , raw materials or labour (Drucker,1993) .Knowledge is a fluid mix of framed experiences, values, contextual information and expert insight that provides a framework, for evaluating and incorporating new experiences and information. It origi-nates and resides in the minds of those who know. (Deven-port and Prusak, 1998).
There is an increasing institutional awareness of the impor-tance of accumulation of knowledge in fostering technological change and thus achieving faster and more sustained eco-nomic growth and development
All developing nations of the world have been striving hard for lubricating the process of knowledge creation, capturing, ac-quisition, dissemination, documentation, sharing and applica-tion. There are two basic kinds of knowledge: tacit and explic-it. Tacit knowledge always resides in human minds, where as the ‘explicit’ knowledge’ is already codified and documented (Nonaka and Takeuchi, 1995).
The real challenge in knowledge management is the capac-ity and infrastructure (physical, technological and intellectual) of a nation in capturing the tacit knowledge. The process of ‘knowledge creation and sharing’ happens in the following four ways (Nonaka and Takeuchi, 1995):
1. Tacit to tacit (Teacher-student interactions and interac-tions with the ‘communities of practice’).
2. Tacit to explicit (publications).3. Explicit to tacit (reflective observation and extending the
knowledge base through wide reading habits).4. Explicit to explicit (collecting, linking and editing already
published material through cross- fertilisation).
The new concept of economic growth model was initiated by Robert Solow in his two classic papers (1956, 1957). In Solow’s model of technological progress, there are four vari-ables: output, capital, labour and knowledge. Output is pro-duced from capital, labour and knowledge. Knowledge is produced from knowledge alone; the knowledge-producing industry has zero costs and zero revenue. With a given in-put of knowledge, there are constant returns to the other two inputs, capital and labour, which are private goods. (KJ Ar-row, 1999). Along with Solow ,many other experts like (Lucas, 1988; Grossman and Helpman 1991; Romer 1986) had given new insights into knowledge as factor of production.
Knowledge as a Factor of ProductionNow days, knowledge is the most important means of produc-tion, as compared to capital, raw material or labour. In a soci-ety based on knowledge, the knowledge worker is the single most important asset (Drucker,1993). Rapid changes due to globalization and development of information technology are the main reasons for this development. Sustainable develop-ment requires not only knowledge but also ability to generate
new strategically valuable knowledge and creativity. This im-plies applying ‘knowledge upon knowledge’ (Harrison, 2000).
In the growth process, knowledge is an input as well as an output. Ideas can be put together to create new ideas (Weitz-man, 1998). Importance of knowledge as a factor of produc-tion has not been recognized for a long time owing to its spe-cial characteristics. Knowledge is a public good with property rights that are rarely enforceable. It is not quantifiable and priced. It is sometimes codified, but more frequently tacit and implicit. All measures of knowledge are indirect, either input to or outputs of its accumulation (Nonaka and Takeuchi, 1999). Accumulations of knowledge, disseminating knowledge, de-veloping and applying knowledge are the different aspects of knowledge management (Diestraten, 1996). In the liberalized era, knowledge flows internationally along with trade. In this context, developing countries need to be agile enough to de-rive benefit out of it.
To monitor its new emphasis on knowledge, the World Bank has created a Knowledge Economy Index (world Bank Insti-tute 2004). According to knowledge Economy Index (KEI), economic performance of the county is measured on the fol-lowing four parameters
(1) The favourability for knowledge development within the economic and institutional regime
(2) Education(3) Innovation(4) Information and communications technology. As Figure 1 shows that most of the under developed countries like African countries, Nigeria, Cameroon, Malawi, Tanzania, are on the bottom of the index , scoring less than two out of a possible ten points. South Africa, Botswana, and Mauritius record scores near the middle. Counties like USA , UK Korea , Finland , West Europe are on the top the index are the most developed countries in the world. This clearly indicates that there a direct link between level knowledge index and eco-nomic growth.
Figure 1: KNOWLEDGE ECONOMY INDEX
Spreading of knowledge results in the production of new goods as well as new methods of producing goods. Once the knowledge product is in the market, its methods of production can be spread through several routes. The main routes of diffusion are imitation, public agencies, trade meetings & dis-cussions and the formal education system. Formal education system is he principal mechanism through which knowledge is created and disseminated.
Education is not merely information. It is the formation of the mind; it is an exercise to make it more cautious, creative and innovative. Education is often perceived as the aggregate of all the processes by which a person develops abilities, at-titudes and forms of behaviour with practical value to the so-ciety (Bhagat, 1989). It includes moral development. If moral development is neglected, the greater technological develop-ment and economic growth may not lead to welfare. Hence, there is a need to integrate culture and spiritual growth with
Volume : 1 | Issue : 5 | May 2012 ISSN - 2250-1991
PARIPEX - INDIAN JOURNAL OF RESEARCH X 235
science and technology advancement. Knowledge, skills, at-titudes, values and habits (competencies) formed in such a system would be a powerful resource for sustainable devel-opment.
Education has a special value in the emerging knowledge so-ciety. It contributes directly as well as indirectly to the wealth of a nation. Education contributes immensely to over- all so-cial development. The level of education in a society (propor-tion of population receiving some education) has also been found to be positively correlated with decline in fertility, im-proved child health, reduced infant mortality, and social and gender equality (World Bank, 1997). This has wide ranging implications for developing countries.
Education is seen as a principal means of increasing the qual-ity and quantity of human capital available in the economy (Schultz 1988,). Education offers great opportunity for em-ployment and economic returns, and so, reduces poverty. Therefore evolving an appropriate education and skill forma-tion system is essential for sustainable and prosperous nation -building.
Role of Education in Economic DevelopmentEducation plays a vital role in economic development and is a prerequisite for rapid economic development . Education stimulates economic growth and improves people’s lives through many channels: by increasing the efficiency of the labor force, by fostering democracy (Barro,1997). A balanced education system promotes not only economic development, but productivity, and generates individual per capita income.( İlhan ozturk,2000)
The role of education in economic development has been well established by the researchers (Sodhi, 1985 and Singh, 1974). At the micro level, the direct and indirect role of educa-tion through value-orientation in economic development has already been established (Bhagat, 1989). Education is also vital to sustain competitive markets and viable democracy.
The linkage between education and economic development has been well established by studies conducted across the world (Dreze and Sen,1995). Education increases individual productivity, as measured by the well-documented link be-tween educational attainment and personal earnings (Psa-charopoulos,1994).At the national level, education plays an important role in fostering economic growth. As knowledge is key factor of production the growth of economies depend on the creation, acquisition, distribution, and use of knowledge and this requires an educated and skilled population. In ad-dition, there is growing evidence that, perhaps, half or even more of the aggregate economic growth is driven by increas-es in factor productivity rather than by factor accumulation in either capital or labour (Easterly and Levine, 2002).
Different levels of education will have different degrees of in-fluence on economic development (Psacharopoulos, 1994). Different levels of education are viewed in terms of literacy, basic education, secondary education, and higher education.
Literacy is one of the fundamental factors responsible socio-economic and political developments of a country. Literacy is a qualitative aspect of population and is an indispensable means for attaining effective social and economic develop-ment. It significantly contributes to human development and poverty reduction. It is a major component of human resourc-es development, and thus, basic to any programme of eco-nomic and social transformation (UNESCO.ORG).
The link between literacy and economic development is well established in the literature .In a study of 88 countries for the period 1960-63 and 1970-73, it was found that an increase in literacy from 20 to 30 per has resulted in increase of GDP ranging from 8.0 to 16.0 per cent. (Rashmi Agarwal and
Talmeez Fatma Naqvi, 2002).
The direct link between rate of literacy and economic devel-opment is evident in the international scenario. The Table 1.1 indicates the direct relationship between literacy rate and GDP of different countries in the world.
Table 1.1: Relationship between literacy rate and GDP
# No COUNTRY Literacy rate GDP
1 USA 99.8 41,3992 SINGAPORE 92.5 28,3683 MORITIUS 84.3 12,8984 SOUTH AFRICA 82.0 12,1615 INDIA 61.0 3,3206 PAKISTAN 48.0 2,6537 BANGALADESH 41.1 2,011Source: www.wikipedia.org
Empirical research on impact of elementary education on growth has proved that increase in the average primary schooling of the labour force has a substantial impact on pro-ductivity.
At the macro level, elementary education benefits the society immensely. Educated parents send their children to school; elementary education leads to perpetuation of benefits from one generation to another (Sinha, 2004 ).
A study on agriculture of 31 countries shows that 4 years of elementary education makes a farmer more productive than the farmer who has no formal education at all. In agriculture, primary schooling affects productivity positively, especially when technology is changing rapidly (Rashmi Agarwal and Talmeez Fatma Naqvi 2002). In a country-specific time series study, Self and Grabowski (2004),investigated whether edu-cation had a causal impact on growth in India and found that primary education had a strong impact on growth.
In the present globalised economy secondary education plays a vital role in economic growth. In many countries the increased demand for workers with secondary schooling has been associated with skill-based technological change
Many studies have documented that a large pool of workers with secondary education was indispensable for knowledge spillover to take place and for attracting imports of technologi-cally advanced goods and foreign direct investment (Borensz-tein, de Gregorio, and Lee, 1998; Caselli and Coleman 2001; Xu 2000). In a study on education and technology gaps in Latin America, de Ferranti et al. (2003) found that the bulk of the difference in computer penetration between Latin America and the East Asian “tigers,” with their significantly wider com-puter coverage, could be explained not only by differences in the share of trade with countries of the Organization for Economic Co-operation and Development (OECD) but also, and most important, by the proportion of the workforce with secondary schooling.
Thus Secondary education makes significant contribution for the development of social capital and economic development. Secondary education is also a key link between primary and tertiary education.
In the knowledge economy, tertiary education plays a vital role in innovation for rapid economic development. Tertiary education helps for economic growth in several ways. It pro-motes employment prospects, better earnings and greater ability to save and invest. Higher earnings for well-educated individuals will result in increase tax revenues for the gov-ernment and decrease deficit financing of the state. It may further enhance the consumption, saving and investment. These benefits may result in better health and improved qual-ity of life, which in turn lead to life expectancy improvements, thereby enabling individuals to work more productively over a longer time boosting their lifetime earnings. Individual gains
Volume : 1 | Issue : 5 | May 2012 ISSN - 2250-1991
236 X PARIPEX - INDIAN JOURNAL OF RESEARCH
can also benefit society as a whole (David Bloom, David Can-ning, and Kevin Chan, 2005).
With regard to the benefits of higher education for a coun-try’s economy, many observers attribute India’s leap onto the world economic stage to its decades-long successful efforts to provide high-quality, technically oriented tertiary education to a significant number of its citizens (JBG Tilak, 2003).
A study conducted by T.C Lin, (2004) in Taiwan on impact of higher education on country’s economic growth, It was found that a 1 per cent rise in higher education stock (as defined by those who had completed higher education, including junior college, college, university, or graduate school) led to a 0.35 per cent rise in industrial output, and that a 1 per cent increase in the number of graduates from engineering or natural sci-ences led to a 0.15 per cent increase in agricultural output. .( David Bloom, David Canning, and Kevin Chan, 2005). Wolff and Gittleman (1993) showed that university enrolment rates are correlated with labour productivity growth. The number of scientists and engineers per capita is also associated with
economic growth.
In a study of six developed countries, De Meulemeester and Rochat (1995) showed that higher education had a strong causal impact on economic growth in Japan, United Kingdom, France, and Sweden, but no impact in Italy and Australia. The study concluded that higher education is necessary for growth but not sufficient. The social, political, and economic struc-tures and the technological level of the society in which the educational system operates plays an important role in use accumulated knowledge of graduates for economic growth ((Jean-Luc de Meulemeester and Denis Rochat 1995).
Another study conducted By H.Jenkins (1995) reveals that there is direct between different levels of education and pro-ductivity. Further study concludes that level higher education stock increased by 1 per cent, results in increase in the an-nual output between 0.42 and 0.63 per cent.
Linkage between Education, economic development and hu-man development is highlighted in the Human Development
Report published by UNIDO (2003).
Table 1.2: Linkage between education, economic development and Human Development Index ( HDI)
CountryAdult literacy rate% of 15 age and above
Primary secondary tertiary combined enrolment ratio %
GDP % (PPP US $) Education index
Human Development IndexHDI value
OECD --- 87 23,363 0.94 0.905Central & eastern Europe &CIS 99.3 79 6,598 0.92 0.781Latin America & Caribbean 89.2 81 7,050 0.86 0.777East Asia &pacific 87.1 65 4,233 0.80 0.722Developing countries 74.5 60.0 3,850 0.70 0.655South Asia 56.3 54.0 2,730 0.56 0.582Sub Sahara Africa 62,4 44.0 1,831 0.56 0.468Least developed countries 53.3 43 1,274 0.50 0.448Source:www.hdr.undp.org
Thus Education is indispensable to economic development. More and better education stimulates not only economic de-velopment, but enhances productivity, and generates individ-ual income per capita income
To explore the link between Education and Economic Devel-opment two case studies have been prepared: cases of Mau-ritius and Singapore.
Case of Mauritius Mauritius is Small Island in the Indian occasion. As Mauritius was under the British colony till 1968 , its education system was largely based on British education system and had faced lot of problems in the filed of higher education . Enrollment of students to schools during 1960s and 1970s was below 1 per cent and high graduate unemployment led to student unrest in 1979 (university of Mauritius, 2004). After country became independent 1968, Mauritian Government initiated drastic changes in education system and invested huge resources both physical and Human. Primary education and second-ary education was made free and compulsory. Further wide range of higher education courses are made available at the University of Mauritius. In developing higher education sys-tem Mauritius has given importance for improving the quality as well as the quantity of its higher education. The University of Mauritius has extended collaboration with other universities in the region to provide world class education .The focus of the higher education system of Mauritius was mainly on the development both skill and knowledge to enhance the em-ployability of the graduates for better employment and rapid economic growth.
The special effort of Mauritian Government has resulted in impressive progress in the field of education. Its gross terti-ary enrolment ratio rose from 1 per cent in 1985 to 15 per
cent in 2004 (University of Mauritius, 2004). The number of students graduating annually from the University with a Bach-elor’s degree rose from less than 40 in 1989 to over 400 in 2004 (UIS-2005)
Before the reforms in higher education, nearly seventy five percent of Mauritian students studied abroad .The improve-ments in education have helped to slow down this brain drain and this has resulted in large benefits to Mauritian society, such as earnings for students, increase in tax revenues for government and improvement of education system as whole
( Pedro Belli, Qaiser Khan, and George Psacharopoulos -1999). The harmonious relation maintained by the university with the government, the private sector, and civil society has to remain focused on the needs of the economy. All this has contributed to the consistent and constant increase in the economic growth rate for Mauritius.
In Mauritius the university curriculum is designed as per the requirement of the Industry. The University offers courses in all the major disciplines such as – agriculture, engineering, law and management, science, and social studies and hu-manities. The focus of each faculty is on the country’s de-velopment requirements (including an emerging emphasis on financial and technological services). The Faculty of Engi-neering, and textile technology have played a vital role in eco-nomic growth. In recognition of the broad skills base needed in modern engineering, faculty of engineering also trains stu-dents in economics, accounting, information technology, and communication skills.
To address issues of poverty, the University has created the Centre for Applied Social Research, whose recent studies include surveys on social exclusion and a report on the at-titudes of unemployed people to working in the country’s Ex-port Processing Zones. The University of Mauritius developed collaborations with international bodies such as UNESCO and the World Bank to monitor social and economic develop-
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ment and this has resulted in development of the economy in several ways
A percentage increase in gross enrolment at high school and higher education level resulted in more than proportionate in-crease in per capita Gross National Income (GNI) in Mauritius is highlighted in the 1.3.
Table 1.3: National income and level of education in Mauritius
1985 1990 1995 2000 2004Per capita GNI(US $) 1050 2,300 3,360 3,690 4,460Gross enrolment ratio- High school 48.6 52.2 61.8 77.6 85.4Gross enrolment ratio- Higher education 1.1 3.4 6.1 7.5 17.2Average of schooling (population aged 15 & above)
5.42 5.57 5.79 6.00 8.5
Source : www. worldbank.org/edstats
It is observed from the Table 1.3 , that education and National income have shown parallel growth during the period 1985- 2004.This clearly indicates education has a direct impact on the level of National income which is reflected in the better standard of living.
Case of SingaporeEducation has been a driving for economic development of Singapore’s economic ever since it attained self-government in 1959 and full independence in 1965. Realizing the impor-tance of education in economic growth, the Singapore Gov-ernment has invested heavily in education and training, both at the universities and in polytechnics vocational and techni-cal education.
During the early phase of economy development from 1960 – 1970, Singapore faced the problems of unemployment, low level of education, post war baby boom and communist la-bour agitation. The economic prerogative was therefore, to create employment, by enhancing the level of education. To lay the necessary foundation for developing basic vocational and technical skills rapid expansion of primary and second-ary education including technical education and training was undertaken. Along with developing schools rapidly emphasis was also train the teachers. Initially the emphasis was on quantity, rather than quality and on primary and secondary education, rather than tertiary.
. After 1980s an increasing emphasis was given for devel-oping the skills, knowledge through quality education and training in schools, universities, polytechnics and Vocational Training Education
From 1990 onwards when Singapore moved, to next phase of development the link between education and national de-velopment became closer. Low level of skill and education of the labor force resulted in low wages and less career progres-sion , and this was not sustainable in the long run, given the wage competition from other countries. To develop employ-ability and to provide right kind of work force in right number emphasize was given to equip every child with information technology skills during their education.
As Singapore moved towards a knowledge-based economy, emphasizes is given more on the maximal development of talents, abilities and lifelong learning. To match the require-ment of rapid industrial needs Singapore’s education system had transformed from survival driven education to efficiency driven education to the current ability driven education during the last four decades.
The experience of Singapore illustrates that the relevant knowledge and training imparted in the educational institui-onsl, is the driving force for development of individual and the economy as a whole. While the emphasis is on encour-aging individuals to participate in available educational pro-grammes, the objectives and standards are set according to what is seen as the needs of a future economy.In other words, the education and training system does not react to current needs but is planned to support future needs which are tar-geted by economic planners ( Dr. N. Varaprasad, 2004).
Table 1.4 presents details about average year of schooling and per capital income in Singapore during 1985-2000
Table 1.4: level of education and per capita income in Sin-gapore
Parameters 1985 1990 1995 2000Per capital income (US$) 6,850 11,850 23,240 24,740Average year of schooling 6.10 5.96 6.72 7.05Primary education (as a % of total population) 10.2 16.5 24.3 25.2Secondary education(as % of total population) 11.00 10.00 9.9 9.9Tertiary education( as % of total population) 2.4 1.6 2.7 3.7
Source: www.worldbank.org/edstats
Table 1.4 shows that excepting in the case of secondary edu-cation there has been a direct link between the expansion of different levels of education and increase in per capita in-come. This case study further confirms that education is one of the fundamental means of improving standard of living of the people by improving their capacity to generate better in-come.
ConclusionSeveral studies conducted in different part of the world have concluded that colleges and universities are most success-ful in influencing economic growth when they are attuned to the economic structure of their local economies However not all observers agree that higher education and economic growth are obvious . Research by Richard.k.Vedder (2004) has questioned whether spending more on higher education necessarily provides larger returns for the local economy and observed that spending on higher education often fail to achieve faster economic growth.
The analysis of the two cases on Singapore and Mauritius clearly highlights that that education is the most important factor for economic growth of any country. It is clearly visible in both the cases that refinement in education system has brought a change in the growth of the country.
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