Education in relation to prosperity, Econometric approach Muh. Irsyad Rusdin (a*), Hamidah (b), Indra Pahala (c)
Universitas Negeri Jakarta
Abstract
The level of development of a country or nation can be assessed by looking at the performance of its education system. One way to measure the quality of education across different countries is through the Program for International Student Assessment (PISA). This study aims to provide empirical evidence of the influence of a country^s education on its economic growth, using PISA scores as a proxy and considering public spending on education. This research diverges from previous studies that primarily focused on the relationship between GDP and PISA scores. The data for this study was collected in 2018 from 37 countries, and the source of the data was the Organization for Economic Co-operation and Development (OECD). By employing an Econometric Model approach, the study establishes a relationship between variables. The findings indicate that education, as measured by PISA scores, has an 87% positive contribution to increasing GDP per capita, with a significant impact and correlation between the variables. This implies that an improvement in education would have a noteworthy effect on the overall well-being of individuals. Furthermore, the study underscores the importance of student competencies aligned with global standards as a crucial factor in determining individual welfare levels.
Keywords: Education, Public Expenditure on Education, Economic Growth, PISA score
