The Urgency of Education in Supporting the Country's Eco-nomic Development Through the Human Capital Theory Approach
DOI:
https://doi.org/10.61132/ijier.v2i4.432Keywords:
Development, Economic, Education, Human Capital Theory, ProductivityAbstract
This article raises the academic issue of the low contribution of education quality to economic development in several developing countries, including Indonesia. This problem arises due to limited investment in developing quality human resources. Education plays a strategic role in shaping the intellectual capacity, skills, and productivity of the workforce, which are the foundation of sustainable economic growth. The purpose of this study is to analyze the urgency of education in supporting economic development through the perspective of Human Capital Theory, which emphasizes the importance of investing in people as a primary development asset. This study uses a desk study method by reviewing various academic literature, previous research results, and reports from international institutions regarding the relationship between education and economic growth. The results show that education plays a crucial role in driving economic and social development through the development of competent human resources. Based on human capital theory, investment in education can improve individual capabilities and societal welfare. Developed countries such as Finland, Japan, and Singapore have successfully demonstrated that large budget allocations to the education sector can sustainably increase economic productivity. However, developing countries and Muslim countries still face obstacles such as unequal access, limited facilities, and low teaching quality. Meanwhile, education in Muslim countries needs to be strengthened through curriculum reform and improved teaching quality to produce a skilled and globally competitive generation.
References
Affandi, Purwaningsih, Y., Hakim, L., & Mulyaningsih, T. (2025). Interplay between poverty, poverty eradication, and sustainable development: A semi-systematic literature review. Global Transitions, 7, 1–20. https://doi.org/10.1016/j.glt.2024.11.001
Begum, V., Anwer Arshi, T., Said Arman, A., Saleem Butt, A., & Latheef, S. (2024). A study on work-family life imbalance among women administrators in UAE higher education institutions. Heliyon, 10(6), e28286. https://doi.org/10.1016/j.heliyon.2024.e28286
Bertoni, M., Huynh, Q., & Rocco, L. (2025). The age gradient in the effects of poverty alleviation programs on schooling: Evidence from the Vietnam hunger eradication and poverty reduction program. Economics of Education Review, 104, 102616. https://doi.org/10.1016/j.econedurev.2024.102616
Burhanudin. (2021). Human capital theory as a theoretical foundation in human resource development. STIE Semarang Journal, 13(1), 1–14. http://repo.iain-tulungagung.ac.id/5510/5/BAB%202.pdf
Dariah, A. R. (2004). Education and economic development. MIMBAR Journal of Social and Development, 21(1), 115–126. https://ejournal.unisba.ac.id/index.php/mimbar/issue/view/28
Dillah, A. U., Asbari, M., & Faris, M. (2023). Education guidelines: Weaving education systems in developing countries. Journal of Information Systems and Management, 2(5), 93–95. https://jisma.org
Droubi, S., Galamba, A., Fernandes, F. L., de Mendonça, A. A., & Heffron, R. J. (2023). Transforming education for the just transition. Energy Research & Social Science, 100, 103090. https://doi.org/10.1016/j.erss.2023.103090
El-Aasar, M., Shafik, Z., & Abou-Bakr, D. (2024). Outdoor learning environment as a teaching tool for integrating education for sustainable development in kindergarten, Egypt. Ain Shams Engineering Journal, 15(4), 102629. https://doi.org/10.1016/j.asej.2024.102629
Haryanto, B. (2015). Comparison of Islamic education in Indonesia and Malaysia. Adabiyah Journal of Islamic Education, 1(1), 79–96. https://adabiyah.umsida.ac.id/index.php/adabiyah/article/view/1665/1951
Hasan, M., Nasution, N., Sofyan, S., & Guampe, F. A. (2023). Education and human resources: Contemplating the role of education in shaping human capital. In M. Hasan (Ed.), Tahta Publisher (pp. 1–10). CV Tahta Media Group. http://tahtamedia.co.id/index.php/issj/article/view/322
Hutami, R. Y., & Riani, N. Z. (2022). The role of human capital and physical capital investment in increasing labor productivity growth in Indonesia. Ecosains: Scientific Journal of Economics and Development, 11(1), 30–40. https://doi.org/10.24036/ecosains.11813057.00
Ihsan, M. N. (2015). Comparison of education systems in three countries: Egypt, Iran, and Turkey. Journal of Islamic Education, 4(1), 49–70. https://doi.org/10.14421/jpi.2015.41.49-70
Kardina, M., & Magriasti, L. (2023). The role of quality education in a country's economic growth. Tambusai Journal of Education, 7(3), 28271–28277. https://jptam.org/index.php/jptam/article/view/11385
Kurniawan, Z. F., Dwy Saputra, D., & Saputra, W. (2024). A peek into the education system in the world's most advanced countries. Journal of Information Systems and Management, 3(2), 23–26. https://jisma.org
Linawati, Y., Suzantia, H., & Wibowo, M. G. (2021). The impact of governance on economic growth and the human development index: A case study of developing countries in the OIC. Temali: Journal of Social Development, 4(2), 133–144. https://doi.org/10.15575/jt.v4i2.12547
Majid, M. A. (2023). Problems of education in Indonesia as a developing country. Salimiya: Journal of Islamic Religious Studies, 4(1), 1–10. https://ejournal.iaifa.ac.id/index.php/salimiya
Munthe, S. (2020). The role of education as an engine of community economic growth. EduTech: Journal of Education and Social Sciences, 6(1), 98–100. https://doi.org/10.30596/edutech.v6i1.4400
Nikkola, T., Kangas, J., & Reunamo, J. (2024). Children's creative participation as a precursor of 21st century skills in Finnish early childhood education and care context. Learning and Individual Differences, 111, 102437. https://doi.org/10.1016/j.lindif.2024.102437
Nurkholis, A. (2018). Human resource development theories: Human capital theory, human investment theory, human development theory, sustainable development theory, people centered development theory. INA-Rxiv, 3–5. https://doi.org/10.31219/osf.io/8trv7
Rachmayan, A. N., & Sudarwati, N. (2021). The contribution of education to economic development. Expectations: Journal of Economic Education, 6(1), 1–11. https://doi.org/10.37478/jpe.v6i1.898
Ratnawati, D., Kusumaningrum, K. D., & Muhtarom, T. (2024). Comparative analysis of developed countries' education for the progress of elementary school education in Indonesia. Indonesian Education Star Journal (JUBPI), 2(3), 110–118. https://doi.org/10.55606/jubpi.v2i3.3048
Safitri, A. O., Yunianti, V. D., & Rostika, D. (2022). Efforts to improve quality education in Indonesia: Analysis of Sustainable Development Goals (SDGs) achievement. Basicedu Journal, 6(4), 7096–7106. https://doi.org/10.31004/basicedu.v6i4.3296
Sanz, R., Peris, J. A., & Escámez, J. (2017). Higher education in the fight against poverty from the capabilities approach: The case of Spain. Journal of Innovation and Knowledge, 2(2), 53–66. https://doi.org/10.1016/j.jik.2017.03.002
Tari, D. N. (2016). World Bank: Education as the foundation of the economy. Bisnis.com. https://ekonomi.bisnis.com/read/20180316/9/750419/bank-dunia-pendidikan-sebagai-fondasi-ekonomi
Ustama, D. D. (2009). The role of education in poverty alleviation. Dialogue: Journal of Administration and Public Policy, 6(1), 1–12. https://jurnal.diklinko.id/index.php/raziq
Yulianti, A., Damanik, I. L., & Siregar, R. C. (2023). Educational problems in developed and developing countries. RAZIQ: Journal of Islamic Education, 2, 160–167. https://jurnal.diklinko.id/index.php/raziq
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 International Journal of Islamic Educational Research
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
