scholarly journals Declining returns to investment in tertiary education in Vietnam

2020 ◽  
Vol 4 (3) ◽  
pp. First
Author(s):  
Ngoc Thi Minh Tran
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Development Strategy ◽  
Global Financial Crisis ◽  
Tertiary Education ◽  
Economic Benefits ◽  
Rate Of Return ◽  
Economic Downturn ◽  
Education Investment ◽  
Returns To Investment

The human capital theory in economics argues that education is an investment in human capital and that the acquisition of knowledge and skills would enable individuals to increase their productivity and earnings, and thereby contributing to economic growth. As an investment, education incurs costs and benefits at various points in time. To measure economic benefits of education investment by individuals, economists use the rate of return to investment in education. This rate of return should be positive and higher than that of alternative options to ensure economic benefits of education investment and motivate education decisions. Given that tertiary education attainment is costly to individuals and the society at large, highly positive returns to tertiary education matter for individual and social human capital investments being economically justified. In the present age of mass access to tertiary education, the pattern of declining returns to investment in tertiary education was observed in a growing number of countries that include Vietnam. This trend may avert individual investment in human capital formation, and thereby negatively affecting national economic growth and development. To contribute to addressing this problem, the current paper aims to analyse the factors that drive the decay in returns to investment in tertiary education in Vietnam. Based on the descriptive research method using descriptive statistics, we summarize key trends in tertiary education in Vietnam. We identify that the abatement in returns to tertiary education investment in Vietnam may be attributed to three main factors: (i) the expansion of education supply, in particular tertiary education; (ii) the economic downturn after the global financial crisis; and (iii) the mismatched quality of tertiary education. These findings are foundations for our suggestions on possible solutions to inform the tertiary education development strategy.

The Failed Promise of Development

2020 ◽  
pp. 104-120
Author(s):  
Phillip Brown
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Emerging Economies ◽  
Capital Investment ◽  
Tertiary Education ◽  
Education Investment ◽  
The World ◽  
Sustainable Employment ◽  
National Investment

This chapter examines the promise of human capital investment on economic growth and its consequences for developing countries. Education investment as a way of increasing the stock of human capital remains a key part of the World Bank’s approach to policy reform for so-called developing countries. The chapter argues that such accounts fail to understand the changing relationship between education, employment, and economic growth. Notwithstanding the rapid economic advances made by some emerging economies, most notably China and India, the experience of development has left many people within these countries stranded in the rubble of modernization, while others, including those with a tertiary education, struggle to find meaningful and sustainable employment. Despite continuous national investment in education and economic liberalization, many developing countries are falling further behind. The chapter describes some of the tensions and contradictions of development in emerging economies and how they are fueled by the failed promise of orthodox theory.

scholarly journals Tingkat Pengembalian Investasi Pendidikan di Kalimantan Barat Tahun 2018

2021 ◽  
Vol 21 (2) ◽  
pp. 164-184
Author(s):  
Sakuntala Devi Ayu ◽  
Sri Mulatsih ◽  
Tanti Novianti
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Rate Of Return ◽  
Individual Data ◽  
West Kalimantan ◽  
Education Investment ◽  
Step Procedure ◽  
Result Show ◽  
The Government

Theoretically, human capital plays an important role in economic growth. In West Kalimantan, the government increase the education investment to improve human capital. This study aims to estimate the rate of return of education investment in West Kalimantan Province, Pontianak and Singkawang District. SAKERNAS 2018 individual data was analyzed using the Mincer Model and the Heckman’s Two-step procedure. The result show that the rate of return of education investment in West Kalimantan province is 3,83 percent. It means that each additional year of schooling will increase income by 3,83 percent. The rate of return of education investment in Pontianak and Singkawang District are 6,21 percent and 4,87 percent, respectively. ------------------------------- Secara teoritis, modal manusia mempunyai peran penting dalam pertumbuhan ekonomi. Untuk meningkatkan modal manusia, pemerintah meningkatkan investasi pendidikan di Kalimantan Barat. Penelitian ini bertujuan untuk menghitung tingkat pengembalian investasi pendidikan di Provinsi Kalimantan Barat, Kota Pontianak, dan Kota Singkawang menggunakan model Mincer dan prosedur Heckman’s Two Step. Hasil estimasi dengan menggunakan data individual SAKERNAS 2018 menunjukkan tingkat pengembalian pendidikan pada seluruh level pendidikan di Kalimantan Barat sebesar 3,83 persen. Artinya, setiap penambahan satu tahun lama sekolah akan meningkatkan pendapatan rata-rata sebesar 3,83 persen. Tingkat pengembalian investasi pendidikan di Kota Pontianak dan Kota Singkawang masing-masing sebesar 6,21 persen dan 4,87 persen.

scholarly journals The impact of education tax and investment in human capital on economic growth in Nigeria

2020 ◽  
Vol 3 (2) ◽  
pp. 77-86
Author(s):  
Abubakar Aminu ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Tertiary Education ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model ◽  
The Government ◽  
Capital Development ◽  
The Impact

This paper investigated the impact of education tax and investment in human capital on economic growth in Nigeria utilizing the Non-Linear Autoregressive Distributed Lag Model of cointegration covering the period of 25 years from 1995 to 2019. The findings reveal that education tax and investment in human capital have positive and significant effect on the growth of the Nigerian economy over the sampled period. The paper recommends that in order to boost the economy, Nigeria would need to, among other policy frameworks, provide a suitable environment for ensuring macro-economic stability through effective utilization of income from education tax that will encourage increased investment in human capital in the public sector. In addition to income from education tax, for effective and speedy economic growth and development in Nigeria, the government, beneficiaries (students/parents), employers of labor and other stakeholders in the society should share the responsibility for financing primary, secondary and tertiary education, so as to provide a solid foundation for human capital development. However, as revealed in this paper, the contribution of education tax and investment in human capital is most likely to be realized over a long-run period than in the short term. Keywords: Education Tax; Investment; Human capital; Economic growth

Considerations on the Advantages of Using Leasing in Small and Medium-Sized Enterprises

2021 ◽  
Vol 19 (163) ◽  
pp. 587-598
Author(s):  
George-Aurelian TUDOR ◽  
◽  
Ioan Codrut TURLEA ◽  
Elena MITOI ◽  
◽  
...  
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Small And Medium Enterprises ◽  
Decisive Role ◽  
Quality Criteria ◽  
Modern Society ◽  
Economic Benefits ◽  
Management Control ◽  
Risk Appetite ◽  
Medium Enterprises

Throughout the evolution of our society, accounting has played an important and sometimes decisive role in making or influencing certain decisions. Accounting research can provide social and cultural studies with important insights into how society and culture is produced and shaped by calculations, technologies and management control practices. An exciting challenge and opportunity for young researchers is to explore the role and impact of accounting in companies as well as in non-governmental organizations, given the many times when the issue of further reform has arisen because of sensitive events in the lives of companies. Increasing quality criteria as well as lowering costs by using leasing as a form of financing has generated part of the evolution of modern society. Thus, the management of companies has constantly had to establish new and new strategies to bring companies to our reputation and esteem through higher performance indicators than in previous periods. The main objective of the article is to understand the concept of leasing financing, to get familiar to the use of leasing, also to validate the hypothesis that leasing means a good manner of financing for small and medium enterprises using a variety of different strategy of economic development and obtaining economic benefits, having as a start point a right interpretation of accounting politics highlighting the true and fair view of the company. In order to validate the hypothesis that leasing is a factor of economic growth, the authors conducted a questionnaire consisting of nine questions in which respondents expressed their opinion on leasing as a form of financing. Following the study, the authors concluded, within the sample analyzed, that the use of leasing is a factor of economic growth, having as a start point the company development strategy, and also, the risk appetite of the shareholders. Also, using the leasing as a manner of finance offered the opportunity for a quickly technological growth and real appearing of the modern historical challenge - globalization.

scholarly journals The Serbian economy ten years after the global economic crisis

2020 ◽  
Vol 65 (225) ◽  
pp. 33-71
Author(s):  
Milica Uvalic ◽  
Bozidar Cerovic ◽  
Jasna Atanasijevic
Keyword(s):  
Economic Growth ◽  
Development Strategy ◽  
Economic Crisis ◽  
Global Financial Crisis ◽  
Policy Responses ◽  
Development Level ◽  
Global Economic Crisis ◽  
The Global Financial Crisis ◽  
Delayed Transition

The global financial crisis hit the Serbian economy severely in late 2008. The subsequent decade has been characterized by negative or very modest economic growth and Serbia is now just slightly above the development level of ten years ago. This paper analyses the most important economic milestones during this decade and investigates why only modest progress has been made, despite various measures implemented by the Serbian government. It examines the background to Serbia?s delayed transition and analyses the effects of the global economic crisis on the Serbian economy. It outlines the policy responses and their results, focusing on public finance, foreign trade, reindustrialisation, FDI, the labour market, and sources of growth. The paper sets out the key challenges to accelerating Serbia?s economic growth and identifies the main elements of a new long-term development strategy.

scholarly journals Performance, Technology and Human Capital

SPLASH Magz ◽  
2021 ◽  
Vol 1 (2) ◽  
pp. 56-59
Author(s):  
Sadono Irawan ◽  
◽  
Abdul Malik
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Positive Impact ◽  
Moving Average ◽  
Secondary Data ◽  
Growth Theory ◽  
Health Investment ◽  
Performance Technology ◽  
Education Investment ◽  
Inclusion Education

This study examines technology inclusion, education investment, health investment and economic growth in Indonesia using secondary data from world banks processed quantitatively using the moving average autoregression method. We find that investment in health, investment in education, and technology inclusion are positively related to economic growth. This shows that in Indonesia it is in accordance with the solow growth theory where technology in Indonesia has a positive impact along with Indonesia's human capital.

scholarly journals A critique of innovation districts: Entrepreneurial living and the burden of shouldering urban development

2021 ◽  
pp. 0308518X2110494
Author(s):  
Carla M. Kayanan
Keyword(s):  
Economic Development ◽  
Development Strategy ◽  
Global Financial Crisis ◽  
Economic Benefits ◽  
New Governance ◽  
City Development ◽  
Spatial Form ◽  
Systematic Analysis ◽  
Urban Economic Development ◽  
The Global Financial Crisis

This article critically investigates the global trend toward urban innovation districts, a distinctly 21st-century spatial form. Innovation districts are a place-based, economic development strategy to concentrate the actors, entities, and infrastructure considered essential to process and product innovation. Built on the idea that today's innovation requires continuous interaction, the design of innovation districts incorporates a density of living and working amenities to accommodate a 24-7 live–work–play environment. At the heart of the innovation district strategies are the entrepreneurs meant to benefit from the built-in supports that help them scale their ideas and introduce products to the market. Despite an embrace by policymakers, to date, there has been little systematic analysis and critique of innovation district strategies or attempts to understand them as tools of neoliberal urban economic development. This article tracks how planners and other city development officials endorsed innovation districts during the Global Financial Crisis. The districts were a stopgap policy measure to accumulate economic benefits while waiting for market activity to resume. Furthermore, this paper argues that the emergence of innovation district strategy points to new governance arrangements that shift the burden of urban revitalization onto entrepreneurs who catalyze growth through their consumption and production activities. The findings are based on content analysis, site observations, and interviews with the creators, implementers, stakeholders, and users of innovation districts in Boston, St. Louis, and Dublin.

scholarly journals A Theoretical Framework for Estimating the Rate of Return to a Pharmacy Education Anywhere

Pharmacy ◽  
2020 ◽  
Vol 8 (3) ◽  
pp. 162
Author(s):  
Manuel J. Carvajal ◽  
Ioana Popovici
Keyword(s):  
Human Capital ◽  
Theoretical Model ◽  
Pharmacy Education ◽  
Rate Of Return ◽  
Costs And Benefits ◽  
Rates Of Return ◽  
Trade Off ◽  
Education Investment ◽  
The Individual ◽  
Benefits And Costs

Undertaking a pharmacy education is an investment in human capital. Candidates trade off present versus future costs and benefits. They make this investment with the expectation of earning enough income throughout their worklives to make their undertaking financially worthwhile. Whether or not this occurs is determined by the rate of return. The aim of the current study was to construct a theoretical model to estimate the rate of return to a pharmacy education investment. Specifications for model assumptions, inputs, and outputs are discussed. The outputs are the rates of return, the inputs are the costs and benefits of a pharmacy education, and the assumptions illustrate the circumstances of the individual or group for whom the model is built. The rate of return is the annual percentage that equates the streams of benefits and costs over the investment span. The higher the value of the rate of return to a pharmacy education is, the more profitable is the investment. This theoretical model may be used to estimate the financial viability of pharmacy and compare it to the viability of other professions or to the viability of pharmacy among various locations.

Does human capital contribute to economic growth in Mauritius?

2016 ◽  
Vol 40 (4) ◽  
pp. 248-261 ◽  
Author(s):  
Harris Neeliah ◽  
Boopen Seetanah
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Tertiary Education ◽  
Composite Index ◽  
Contributing Factors ◽  
Content Type ◽  
Output Elasticity ◽  
Long Run ◽  
Relevant Variables ◽  
The Impact

Purpose Real gross domestic product (GDP) growth for Mauritius has averaged more than 5 per cent since 1970 and GDP per capita has increased more than tenfold between 1970 and 2012, from less than $500 to more than $9,000. It has often been reported that human capital, along with other growth enablers, has played an important role in this development. The purpose of this paper is to study this nexus. Design/methodology/approach A human capital augmented Cobb-Douglas production function is used, where output is also a function of capital and labour. One of the innovations of the present paper is the use of a composite index to proxy human capital. The authors investigate the impact of human capital on economic growth in a dynamic vector error correction modelling (VECM) framework. Findings The general results here show that stock, labour and human capital are all significant growth determinants, with human capital having a long-run output elasticity of 0.36. The VECM results generally validated the long-run output elasticity, although a relatively lower elasticity of 0.1 is obtained. Both sets of results tend to point to the fact that human capital has significantly contributed to economic growth in Mauritius. Research limitations/implications The current paper paves the way for future work, which can build on the composite HCI developed here and aggregate it with relevant variables representing tertiary education and training, to better analyze and further understand the role of human capital on economic growth in Mauritius. Originality/value Here, the authors posit that human capital is an aggregate of health, education and nutrition, and the authors use a composite index along with other contributing factors to study its impact on economic growth, within a VECM framework.

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