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Education is one of the most important fundamental factors that affect economic development. None of the countries canachieve sustainable development by ignoring education. Education improves people's well-being and living standards by rising thesocial benefits which are utilized either by individuals or as a society, education develops people's talents, skills, creativity,productivity, imagination, knowledge in any branch and also enhances advances in technology.

With all those critical points inhand, education has as very important effect on both social and economic progress in Turkey by increasing the welfare of thesociety. During the twentieth century; education, experience and the acquisition of knowledge have become the basicdeterminants of a nation's productivity. That is why it is called the "Age of Human Capital" and the determinant of a country'sliving standards is how well it succeeds in improving the skills and knowledge by educating the majority of its population.Demand on logical or analytical reasoning or providing technical and characterized knowledge with very simple way ofschooling will rise the productivity of labours in high-skilled occupations or make them to have more professional positions.

Education itself improves not just the productivity of workers or high-skilled ones, but also increases the productivity of farmers.So the greater the rate of schooling, the greater will be the investment on human capital in the society and the greater the increasein economic growth.In this respect, investment in Human Capital can be considered as the expenditure on education, skills, talents and careerrelated knowledge which increase as person's adaptability to changing requirements of the economy, develop the quality of humanbeing and increase the income of a person, family and the nation as a whole.

So education contributes directly to the growth ofnational income by improving the productive capacities of the work force.Because Human capital takes important part in economic literature, the concept of capital has been defined as all monetaryand non-substantive economic values to be instrumental in production. In this respect, human capital in general is defined asproper knowledge, skills and all other individual qualifications. This definition also involves education, work experience, learningby-doing, training and all other activities which people can use their skills more efficiently.

All those components fasteneconomic development by providing rational fulfillment. It can be said that accumulation in human capital provides positiveexternalities by giving a direct force to measure the productive effects, developing innovation in knowledge and skills, decreasingthe cost of transferring information and helping people to find a better position in the work force.In the process of economic development, another important shift revolves around education, it has a permanent place ineconomists theory on human capital and modernization progress.

(Özeti siteye yönlendiren: İrem Karamanop)