Economics of human capital and more clearly economics of education was born as a formal area of study only five decades ago. The human capital theory was a great contribution to economics and it created the human investment resoluation in economic thought. The very concept of capital had to undergo a serious change with the emergence of human capital on being realized of profound interface with the newly emerging principles and theories of human development.

Student on education-development relation yield contribution of education in development and the effect of development on education through a two way relationship. Such relationships were based on rate of return analysis, correlations, production, functions, and analysis of simultaneous equations.