Summarize Essay Example | Topics and Well Written Essays - 2500 words

Summarize - Essay Example m 1960 to 1990 fuelled by donors’ emphasis on basic education, there has been little or no response of economic growth to this educational explosion. This in part, is due to the lack of association between growth in schooling and GDP growth as has been noted in several studies. There is a negative and insignificant relationship evident in the comparison drawn between Asia and Africa. Also, a similar study found that there is no relationship between growth in years of schooling and per capital GDP growth. Another study found that disparity in growth across nations have little to do with variations in human capital growth. To mention but three. Although physical capital and human capital growth may have failed to explain variations in growth, some economists assert that physical capital and human capital can explain the large international variations in income. Such was the endeavor of Gregory Mankiw who points out that â€Å"income in the long run in the Solow model is determined by saving in the form of physical capital and by saving in the form of human capital.† To reconcile his position with the nonrelation of growth in output to growth in human capital, Mankiw ties up some loose ends: in the Solow framework (as applied to poor countries) by adding human capital; of the slow growth of poor countries by holding that once capital accumulation and education are controlled for, poor countries did tend to grow fast; and of the lack of capital flow to poor countries by supposing that physical capital as opposed to human capital could move across countries. Easterly identifies three problems with Mankiw’s relationship between secondary enrollement (which he uses as his measure of human capital saving) and income. Firstly, secondary education is not a sufficient measure of educational accumulation so that Mankiw overstated the variation of education in general by a narrowed concentration on it alone. Secondly, to â€Å"assume that capital flow would equalize rates of