Comments on: Larry Summers on higher education and development http://www.eastasiaforum.org/2008/08/26/larry-summers-on-higher-education-and-development/ Economics, Politics and Public Policy in East Asia and the Pacific Sun, 12 Feb 2012 22:50:38 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Risti Permanihttp://www.eastasiaforum.org/2008/08/26/larry-summers-on-higher-education-and-development/comment-page-1/#comment-39 Risti Permani Mon, 01 Sep 2008 19:51:12 +0000 http://eastasiaforum.wordpress.com/?p=960#comment-39 The effects of human capital on growth are most evident at the primary and secondary level in middle-lower income developing countries and at the tertiary level in developed countries (Richardson 1997; Revoredo and Morisset 1999). If we talk about East Asian, based on the literature survey that I did, human capital (as proxied by the education attainment) is necessary but it is not a sufficient condition to enhance economic growth. Many empirical works couldnot find enough statistical evidence to conclude the relationship between humann capital and economic growth, neither at the primary and secondary level nor at the higher level of education. But as the value of education has been widely accepted (also in Asian culture), at the micro-level, education has a strong effect on individual wage. Hence, the development of the education sector seems to be unavoidable. Regarding to a question about which level of education is significant, I think it needs a further empirical work on individual country. An indication that human capital and economic growth have a two-way relationship suggests us to consider the development stage of an economy. The labour market in Viet Nam which is still in the transition phase might reguire lower average of education level than the market in Japan. Risti Permani - University of Adelaide The effects of human capital on growth are most evident at the primary and secondary level in middle-lower income developing countries and at the tertiary level in developed countries (Richardson 1997; Revoredo and Morisset 1999).

If we talk about East Asian, based on the literature survey that I did, human capital (as proxied by the education attainment) is necessary but it is not a sufficient condition to enhance economic growth.

Many empirical works couldnot find enough statistical evidence to conclude the relationship between humann capital and economic growth, neither at the primary and secondary level nor at the higher level of education.

But as the value of education has been widely accepted (also in Asian culture), at the micro-level, education has a strong effect on individual wage. Hence, the development of the education sector seems to be unavoidable.

Regarding to a question about which level of education is significant, I think it needs a further empirical work on individual country. An indication that human capital and economic growth have a two-way relationship suggests us to consider the development stage of an economy. The labour market in Viet Nam which is still in the transition phase might reguire lower average of education level than the market in Japan.

Risti Permani – University of Adelaide

]]> By: Treena Wuhttp://www.eastasiaforum.org/2008/08/26/larry-summers-on-higher-education-and-development/comment-page-1/#comment-40 Treena Wu Fri, 29 Aug 2008 13:14:39 +0000 http://eastasiaforum.wordpress.com/?p=960#comment-40 Larry Summers is oversimplifying the relationship between human capital and the development of economies. Sure, we're all on board promoting stronger higher educational outcomes but this still mostly comes from primary and secondary schooling inputs. It's not university level - I wonder which countries' recent economic histories he's talking about. Larry Summers is oversimplifying the relationship between human capital and the development of economies. Sure, we’re all on board promoting stronger higher educational outcomes but this still mostly comes from primary and secondary schooling inputs. It’s not university level – I wonder which countries’ recent economic histories he’s talking about.

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