The Determinant Power of Education on Economic Development - Term Paper Example

The Determinant Power of Education on Economic Development Table of Contents Introduction 3 Literature Review 4 Methodology 6 Data Analysis 7 Works Cited 10 Introduction: Analysts, practitioners, and those uniquely interested in the determinants of economic development have long sought to understand the means by which this process can be made more efficient. The underlying drive and focus for all of this is of course the desire to create further economic development and to benefit the maximum number of individuals within society. As can be clearly noted, economic development is one of the most effective and time proven methods of raising the standard of living, quality of life, and overall wage levels that individuals within a given geographic region would otherwise be able to exhibit. Obvious determinants of economic development include, but are not limited, to the following: the overall number of human resources available within a given geographic region, the overall number of raw material or prevalence that might be exhibited within a given geographic space, distance to determine the market, and last but not least the overall education level of the workforce. It has been broadly assumed over the past several decades, without a great deal of analysis, that education levels dramatically impact upon the overall rate and extent to which economic development is able to take place. However, a more thorough analysis of the issue does not necessarily reveal this simplistic interrelationship. Instead, stronger more market-driven determinants have been effectively determined to have a profound impact upon economic development; at least as compared to the overall education level of the human resources that might be available within a state. As a function of this understanding and analysis, the following paper will provide a literature review, methodology, data analysis, references, and appendix that describes the impact and importance of education in terms of economic development. The underlying hope of the author is that such a level of analysis will be beneficial in providing a more determinant of how economic development can effectively be engaged and how stakeholders can seek to promote further levels of economic development within their respective spheres. Literature Review: One of the first pieces of literature that was reviewed in terms of this particular focus has to do with Singh and Hensel’s article entitled “Impact Of Extension Education On Improving Knowledge Of Sustainable Technical Agricultural Practices”. Within the article, the authors consider the means by which the United States economy has changed as a function of time. Essentially, manufacturing and the production of durable goods within the United States was a staple of economic development; even as compared to service industries or any other sector of the economy. However, in recent years, the degree and extent to which manufacturing has continued to define the American landscape of economics has decreased. Within such an understanding, the authors point to the fact that they need and requirement for specialized training and trade schools that can provide manufacturing expertise and hands-on experience has been greatly reduced (Singh and Hensel 201). As these jobs have slowly but definitively moved overseas, and outside of the space of US production, the demand for specialized education, at least in terms of manufacturing, is almost a figment of the past. Another piece of literature that was reviewed in terms of the overall interrelationship between education and economic development had to do with Hordern’s analysis entitled “Workforce Development, Higher Education And Productive Systems”. Within this article, the author indicates the fact that the fastest-growing states within the United States, at least in terms of economic development, do not heavily rely upon a skilled workforce. Instead, they rely upon raw material extraction and primary production that neither leverages an education and a service-oriented economy nor a requirement for education in terms of manufacturing. This dynamic shift is one that is proven by Hordern within a variety of factors (Horden 411). Whereas there are of course flaws and unique drawbacks in terms of the interpretation that Hordern provides, the article itself provides a relevant baseline of understanding in terms of how economic changes as somewhat shifted the landscape of expectation in terms of education and its overall impact on economic development. A further piece of research that was read as a means of informing this particular literature review is that of Gordon’s article entitled “Does Economic Growth Require Career and Technical Education?”. Within this particular article, the author references the different regions and states within the United States which have spent a disproportionately large portion of their budget as a means of seeking to provide secondary and postsecondary education in terms of specific trades and marketable economic skills. Essentially, the author delineates the fact that the means by which the private and public sector coalesce is much more limited as compared to the degree and extent than most analysts had previously assumed. In other words, the author delineates the fact that the public sector is not effectively able to anticipate and re-gear its educational programs as a means of providing the split-second changes to economic demands that the market regularly exhibits (Gordon 43). The broader understanding that can be seen within this article has to do with the fact that even if a particular region engages with an economic development policy that is steeped in educational reform and providing secondary and postsecondary education to its participants as a means of building its economic base, this is not guaranteed to effect the desired result that these stakeholders ultimately intend on creating; namely and expanded tax base that is able to more effectively provide for the needs of individuals within the given region or state. Methodology: Based upon the information presented and analyzed above within the literature review, the methodology of attempting to measure the impact of education on economic development is necessarily one that will require a level of nuance and understanding; at least in terms of the way in which state/government subsidized programs impact upon the viability of a specific workforce or demographic. Accordingly, the methodology that has been proposed within this particular research is to analyze the fastest-growing economies within the 50 states. Therefore, the analysis will consider the case of Nebraska, South Dakota, Texas, Utah, Colorado, Idaho, Oklahoma, Wyoming, and North Dakota. The underlying rationale for engaging with a discussion and analysis of economic development and its interrelationship to education within the specific states is of course the fact that a more expansive analysis would require an inordinate level of research and could expand the project beyond its ultimate scope. Furthermore, by engaging with the economies and demographics within the fastest-growing states, it is possible to analyze and understand the most powerful and impactful determinants that are contributing to economic development without being sidetracked and confused with information that might not necessarily relate directly to how economic development is ultimately predicated. Data Analysis Based upon preliminary data analysis for the state in question, it is clear and apparent that the growth and economic base and overall economic development that is taking place within the state is not predicated upon the amount of money or overall emphasis that these dates, or indeed the federal government within the states, is focusing on education. Instead, within the case of Colorado, Oklahoma, Wyoming, and North Dakota, fossil fuels are contributing to the runaway level of economic growth. The most part, individuals involved in the fossil fuel extraction industry do not require specialized training and years of prior experience before they can begin to integrate with this field and earn certifications on the job. The allure of working in places such as North Dakota, Colorado, Wyoming and Texas is ultimately leads to the fact that an average person with a modicum of modest education can walk onto these jobsites and begin work at a much higher salary as compared to what they might be able to achieve within their home region. As a direct result of this, the major workforce development and economic development is taking place within the states, underpinned by fossil fuel growth, oftentimes sees a situation in which non-state workers, or individuals from clear across the country, comprise the vast majority of the workforce. This is especially the case in places such as Wyoming or North Dakota in which the states already have a relatively limited population and drawing upon an existing pool of labor would not be sufficient to fulfill the needs that the market is currently exhibiting. Likewise, in terms of Idaho, South Dakota, and Nebraska, agriculture is the industry that is underpinning the vast majority of economic growth that is currently taking place. Not surprisingly, the overall level of education that is required in order to engage with a career in agriculture is not commensurate with the overall level of education that is oftentimes presented as the key to economic success and economic development among experts within the field (Benos and Zotou 670). Essentially, from all of the 10 states that had been listed above analyzed, only the case of Utah exhibit a situation in which the overall economic growth and development that is taking place is clearly and definitively linked to an increased level of manufacturing. Whereas the other field that have been discussed do not require a great deal of education or antecedents training, modern manufacturing requires a great deal of this as a means of ensuring that this economic base and continue to compete with the remainder of highly skilled manufacturing regions and nations around the world and continue to be relevant. As such, the case of Utah provide something of a classifier and coastal to the information that has thus far been presented; in the fact that individuals who provide the backbone of manufacturing expertise within Utah are inherently well-educated and find it necessary to maintain a level of ongoing knowledge in terms of the technology and developing trades that exists within the field of manufacturing. As such, rather than stating that the paradigm of education directly corresponding to economic growth is ultimately flawed and categorically untrue, the analysis and data set that was discussed and studied is able to present a more nuanced picture; one in which levels of higher education can be potentially beneficial with regard to the way in which certain regions grow. However, with this being said, it should be understood that the ongoing level of understanding in terms of education and how it impacts upon economic growth is still mostly misunderstood and has caused at least a partial loss of efficiency and productivity for regions that might otherwise specialize in aspect of economic development that might not necessarily correspond with the educational goals that are being promoted at that time. Works Cited Benos, Nikos, and Stefania Zotou. "Education And Economic Growth: A Meta-Regression Analysis." World Development 64.(2014): 669-689. Academic Search Complete. Web. 31 Oct. 2014. Gordon, Edward E. "Does Economic Growth Require Career and Technical Education?" Techniques: Connecting Education & Careers 89.4 (2014): 42-45. Academic Search Complete. Web. 31 Oct. 2014. Hordern, Jim. "Workforce Development, Higher Education And Productive Systems." Journal Of Education & Work 27.4 (2014): 409-431. Academic Search Complete. Web. 31 Oct. 2014. Singh, Sucheta, and Oliver Hensel. "Impact Of Extension Education On Improving Knowledge Of Sustainable Technical Agricultural Practices." Agricultural Engineering International: CIGR Journal 16.1 (2014): 198-206. Academic Search Complete. Web. 31 Oct. 2014. Read More