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In the current global world, education is the basis of human capital. Human capital is as important as physical capital for economic development and growth. As education is essential for individual and societal development, it also contributes to economic development and growth. These properties render education a semi-public service that should be offered by both public and private sectors. Due to positive effects of education on individuals and the society, many countries have directed their attention to education spending. This study investigates the education spending in Turkey and then make comparisons with Organisation for Economic Cooperation and Development (OECD) countries. The analysis shows that, despite the steady increase in expenditure on education during the last decade, total expenditure on education is extremely low compared to other OECD countries in terms of indicators like spending on educational institutions as a percentage of gross domestic product (GDP), spending on educational institutions as a percentage of total public expenditure, and the amount of annual educational spending per student, all of which provide solid criteria for a qualitative and quantitative evaluation of educational services. [ABSTRACT FROM AUTHOR]

The quality and quantity of human capital which allows countries to wisely and effectively use their resources is vital to economic growth and development of countries. Additionally, real gross domestic product- an indicator of economic growth- has a significant effect on development along with factors such as health and education. A review of the reports published by United Nations Development Program reveals that a country's level of development is represented by the ''human development index'' ratings. In the same report appears "expectancy of life at birth" which is an indicator of health investments, and ''schooling rate'' as a measure of educational investments. In this context, this study presents a theoretical discussion on the concepts of human capital, development and growth and later, the study empirically tests the relevance and validity of the relationships among the research variables utilizing data on OECD countries. [ABSTRACT FROM AUTHOR]