RELATIONSHIP WITH EDUCATION EXPENDITURE AND ECONOMIC GROWTH IN OECD COUNTRIES: A PANEL DATA ANALYSIS

From the second half of the twentieth century, human capital has begun to be added in an increasing manner, especially to the basic production factors considered as labor, capital, entrepreneur and natural resource in classical economic theory. With this structural change in production, the development of human capital has become of great importance for internal growth models. Nowadays, as the strength of the arm power is greatly reduced in production, the brain power has increased in importance, and the idea of people investing in themselves has begun to be widely accepted. Education, which is one of the important dynamics of human capital with health, plays an important role in this context. Increasing the level of success with the higher education level, recruitment of qualified workers, better employment opportunities and increased earnings are significant contributors to growth and prosperity in OECD countries. In this study, the relationship between educational expenditures and economic growth for selected 19 OECD countries is analyzed using the panel data method.