The Role of Education Quality in Economic Growth and Development : A Case Study of Singapore’s Economic Success

Abstract

Among the seventeen Sustainable Development Goals is a focus on quality of education. Education plays an important role in several areas; however, it has been researched to have a role and relationship with economic progress. In terms of education quality, Singapore – a developed nation – has ranked consistently high in PISA along with other developed countries. Developing countries, meanwhile, ranked low. However, Singapore was not always a developed country. With previous research on education, and Singapore commonly known to have quality education, the question whether quality education played a role in the country's economic growth arises. Consequently, serving as an example to developing countries to improve their education – allowing them to close the gap with developed countries. In this thesis, the role of education quality in economic growth and development is explored through a case study of Singapore. It is shown that education played a significant role in Singapore’s economic progress – initially through its basic provision, later with a major focus on higher quality of education. This enabled the country to continue its economic growth, which led to the change in its economic state. The economic progress Singapore experienced is explained by human capital development as human resources produce economic output and efficiency, with education as a proxy for human capital. Specifically, this paper shows quality education as the correct measure of education, with education quality having a causal relationship with economic growth and development – which can also be inferred for Singapore, using in particular Hanushek and Woessmann’s arguments.