Measuring the External Efficiency of Formal Education and Its Impact on Economic Growth in Iran during 1975-2013

This study aims to measure the external efficiency of formal education and then evaluating the effects of economic growth in Iran during 1957 to 2012. External efficiency, is the responsibility of educational system to social system in term of individual, economic, political and cultural dimensions. The research method to measure the relative efficiency is the Data Envelopment Analysis (DEA) method with the input-oriented and constant return to scale , and efficient units are ranked using Anderson-Peterson (AP). Using the econometric method GMM to evaluate the effect of the external efficiency of education on the economic growth. Results showed that in 85 percentages of examined years , external efficiency of education is acheived. inputs that affect respectively on the external efficiency are include educational equity, technology infrastructure, education expenditures and quality. Output that affect respectively on the external efficiency are include freedom, environment protection, family sustainability and establishment. For inefficient units, the most of output shortage related to security and maximum output surplus is for education expenditures. External efficiency of education, labor and capital have a positive effect on economic growth in Iran. External efficiency of education is the cause of economic growth.