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Economic growth and education: a new international policy

First of all this paper presents a world wide view of economic growth and education in 1994, with data of population, gross domestic product per head, and public expenditure on education per head for 199 countries grouped in 40 geographical areas. In the second place the paper present an international production function that includes both physical capital and human capital, measured by the stock of population with secondary education of second level complete, as factors of production. The model was fitted with data of 37 countries, of different levels of development, and shows a good fit and the significativeness of the coefficient of both variables. Education has a positive influence in economic development As many countries are very far below the world average of production and education expenditure by inhabitant, measured in purchasing power parities around 5620 dollars for production and 257 for education expenditure by inhabitant, the only way to improve their situation is to foster international co-operation, as many of those countries are unable to cope with their challenges because they are so poor. Education has a positive influence on economic growth also reducing excesses in fertility average rates, creating a social environment that improve productive investment, making workers more productive and voters more prepared to choose a good government and promote reasonable socio-economic policies. The international co-operation should improve also, where needed, better quality in education contents of human values, promoting respect to peace, human rights and equality for women, as well as the learning of one or more widely spoken world languages to avoid isolation and promoting the access to a greater wealth of information.