EDUCATION LED GROWTH HYPOTHESIS: LITERATURE REVIEW.

So far, a number of studies emphasized the role of the educational variable. Back in 1990, Romer promoted the idea that educated workforce has the potential to generate and implement new technologies and to stimulate growth. Higher education has become an imperative of the development of a global society. It is a society that bases its development on the rapid changes and progress that entails constant evolution of information and communication technology. This society has become a society of knowledge with the jobs that are increasingly becoming knowledge intensive and ensuring sustainable development of a society. The purpose of this paper is to give a detailed review of previous studies related to the so-called 'education led growth hypothesis' and review the existing empirical evidence to support the fact that education is one of most important determinant of economic growth of a country. The paper contributes to existing research in a manner that at one place summarizes previous empirical evidence on 'education led growth hypothesis' but also provides recommendations for future research. [ABSTRACT FROM AUTHOR]