Education as a human capital aspect

Educational aspect of human capital is the main value of the economy of the 21st century. The global competition between economically active people with professional competencies has not ever been as acute as it is now. The competitiveness is growing along with the technological development. The global educational objective is to create the economic growth model based on the cooperation of the state, business and society by developing human capital. A student's awareness of his role in the national economy via education leads to the country's welfare gain in the long-term period. The research renders the analysis of the trend between the country's economic productivity and its educational level. It considers investment in education as a protectionism measure. The aim of the study is to work out a number of recommendations in educational matters, which could boost national competitive advantage in terms of globalization. Objectives: to investigate the correlation between the educational level and the GCI (Global Competitiveness Index); to estimate the influence of primary/secondary/tertiary education enrollment rates on the social economic wealth; to compare the educational structure as the national competitive strength. Results: increasing the quality of education and tertiary education enrollment by 1%, GDP (Gross Domestic Product) per capita relatively grows by 3% and 0.2%. The quality of education and secondary enrollment factors explain the GDP per capita by 68%. The primary education enrollment in its turn has a stronger impact as it stipulates the GDP per capita growth by 3%. The employment in services depends on the quality of math and science education and grows by 0,6%. The new trends and challenges of modern conditions are creative economy, digital economy, and the aim is to create conditions for their development and cooperation. The long-term issues are related to the innovational economy development, the research and development clusters creation, an increased contribution of the social sphere to the economic growth. Elaborated recommendations: The investment in the secondary education, the niche student's specialization, the introduction of economic basis in schools, providing the opportunity to receive a joint degree in the selected major and economy and getting students motivated to have a technical background are in the interests of the state and enterprises. Data sources: World Bank; GCI Dataset. The data was analyzed via econometric modelling software “Eviews”. It includes 131 observations of national economies and 18 macroeconomic indicators.