The impact of education on economic competitiveness: evidence from Kosovo

Quality of higher education and training is assessed to be a crucial component for economies that want to move up the value chain beyond simple production processes and products. In particular, globalizing economy requires economies to nurture pools of well-educated workers who are able to adapt rapidly to the changing environment. The study examines the impact of secondary and higher education enrolment rates and quality of provision on economic competitiveness. It explores the system for labor force skills upgrading and its relation to the evolving economy of Kosovo. The level of productivity is affected by investments in sound education and training policies. The study adopts the national competitiveness approach and assesses the level and ways that the education system in Kosovo affects the national competitiveness index. The assessment integrates both static and dynamic components of education and is based on econometric analysis.