write about role of public investment in education. about 500 words
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Today investment in education is one of the most important factors of the development in any modern country. Our paper finds out of the points of human capital and analyses the proceeds of investment in education. Investment in education is a necessary investment that certifies higher productivity in the economy. To measure the proceeds on the educational investment, the cost-benefit analysis is usually used including the calculation and assessment of all the relevant costs and benefits. Estimations show that the return on the investment in education is higher than that on the investment in physical capital. Investment on education has both private and public returns-individual and social. Individuals with more human capital manage to be very efficient at their employment search, and less suffer from unemployment. Most educated people have high labor productivity that effects on the profit of the firm and its market evaluation. Due to investment in education the profit recently, the macro-economic situation in most EU countries has changed significantly. At the EU level, in 2004 the main components of public spending were social protection, general public services and health, and education. It can change the priority set by an economy. It can reflect country-specific objectives in spending spheres. In 2005 nearly 90% of investment in education at European level was covered by public sources. All these transactions are included in the indicator on public investment as a percentage of Gross Domestic Product. There are many variations between European countries in this point. In 2005 percentage of GDP was higher than the EU average in 2004. Public investment on education can suggest a complementary outline on the public effort made by a country to support its educational system. Many European countries are trying to increase the public investment on education lately. In some countries (Romania, Hungary or Cyprus) the public sources allocated to education shown in comparative PPS have witnesses significant increases between 2000 and 2005 (over 10% annually). High standard annual increases in the absolute figures of public investment on education between 2000 and 2005 were noted as well in Ireland and Greece and in more than half of the Members States the standard increase was at least 5% annually.