THE EFFECTS OF EDUCATION QUALITY ON ECONOMIC GROWTH: THE PISA ASSESSMENTS APPROACH

Education as a part of human capital, represent an opportunity to increase productivity, to build stronger social infrastructures and to guarantee a long-term economic growth. Therefore, we can understand that education and investment in it, represent an opportunity to improve the national welfare. But it is not cautious at all to recommend that each and every spending on schools is a productive investment that will see the returns estimated. Instead, it is necessary to achieve high quality levels on education in order to accelerate economic growth and ensure economic stability.

This paper reassesses the relationship between inequality in the distribution of education quality and economic growth from an institutional perspective, establishing a causal relationship between PISA assessments and high quality education and between economic growth with a particular focus on the monetary measure of the GDP. In other words, the main goal is to proof that better national educational system promotes better country economics in aggregate terms, explaining why it is so profitable to invest in education.