Abstract

The study examines the dependence between education and economic growth. Based on the neoclassic model of growth a theoretic dependence between human capital and GDP is drawn. The effect of public expenditure for education on growth in EU countries is studied. The econometric analysis shows that higher rates of economic growth are associated with accelerated growth of state expenditure for education. For the old member-states there is also a positive dependence between research and development expenditure and the trend toward growth of the aggregate product.