The Economic Rationale behind Investments in Education and Human Capital

This paper evaluates the efficiency of education and human capital investment practices in the Republic of Macedonia, as a key stimulant in providing the necessary equilibrium between the structures of the labor market, the quality of education and economic growth. The development of higher education is seen as a key stimulator of the vital policy-making strategies which aim to affect a growth in employment. Moreover from the perspective of knowledge accumulation, the internationalization of higher education is seen as both an educational and an economic tool which can be used for increasing the functionality of the Macedonian market economy. Comparisons with Croatia and Germany, aim to address the ‘knowledge based’ economic outcomes of the contemporary management approach towards investment in knowledge and education. In conclusion, bridging the gaps between the government, the universities and the business sector as well as the students is seen as a key stimulator of the rationale behind investments in education and human capital. Hence, the suggested shift in management practices focuses on the ‘bottom-up’ management approach, in interaction with ‘top-down’ management, as a recommended tool for reaching better ‘knowledge economy’ outcomes