The Effects of infrastructure development on economic development

Abstract

To assess the condition of education and its role on the economy, I followed causal analysis to see on proximate and ultimate impacts of education on the economy. I used descriptive analysis using statistical and econometric facts to see the disparity in enrollment among regions, sexes and the overall returns to investment in education. In the analysis a number of problems were observed in the overall development of the education process. Enrollment rate is too low to expect a significant positive impact on the economy. The disparities among regions and sexes are very acute. Despite these lagged developments, some progress in the enrollment ratios, regional disparities and participation of female students were observed in recent years. On other hand, quality and efficiency of the educational process were highly affected in the past two decades. The effect of education on the economic development was found to be less sound, as it was constrained with a number of problems. In spite of this, the return to investment in primary education is far better than to secondary education and the social return decreases as the level increases. This has revealed the effect of subsidization. This overall has confirmed the well-established empirical regularities on human capital, that is, the social return to education is inversely related to the level of education.