Journal of Middle East Applied Science and Technology (JMEAST) 

 

ISSN (Online): 2305-0225 
Issue 15(4) [Supplementary Part IV], September 2014, pp. 1069-1071 

 

1069 

 

 

 

 
 
Abstract

 The main goal of this paper is the study of the 

influence of internal characteristics of a solar cell such as 
resistance, current and the solar structure on the output power. 
Also the influence of the external parameters such as temperature 
and reflection angle on voltage, current and the output power, is 
presented.  Simulation results are obtained using Matlab software. 
Finally, using these results, the parameters that have the most 
influence on the output power are determined. 

Keywords

 solar cell, internal and external factors, modeling, 

matlab.

 

I.  I

NTRODUCTION

 

onsidering the importance of electricity and the 
methods for electric power production, many efforts 
have been taken in order to produce healthy energy to 

save the resources and to prevent environmental troubles. 
The solar energy is considered as a healthy energy. 
Reproducibility and environmental compatibility are the 
main advantages of using the energy of sun. Solar cell is the 
best replacement of fossil fuels. One of the components of 
this system is energy transmitter or solar panel. One of the 
factors which is important in the sizing of the panel is the 
efficiency. The efficiency of the panel is related to 
temperature and the temperature is related to the reflection 
of the sun itself [2]. In [1] and [2], parameters of 
temperature and reflection angle as external factors which 
have the most impact on output power and external voltage 
of the solar cell are studied. The main purpose of this paper 
is the study of the impact of external and internal parameters 
of the solar cells on output power and they have been 
simulated and analyzed by Matlab software.  

II.  T

HEORY AND HISTORY OF RESEARCH

  

 

From electric net point of view, a reproducible system by 
the ability to inject power with less frequency or by the 
ability to adjust radioactive power is useful [ 5 , 6 ]. These 
systems improve the quality of the power by reproducing 
radioactive power, reforming the power factor and 
controlling voltage [7]. 
 
 

 

 

 

 

A.  Modeling solar cells 

A solar panel is a group of solar cells that have been 
fastened to each other in the form of occult or parallel[3]. 
The orbit of a solar cell is modeled like figure 1. 

 

 

Fig 1: the orbit of a solar cell 

The used solar cell in the source [2] has some features that 
is shown in table 1. 
 

235W

  

Maximum power (Pmax)

 

10%/-5%

  

Tolerance of Pmax

 

37.2V

  

Open circuti Voltage (Voc)

 

30.1V

  

Maximum Power Voltage (Vpm)

  

8.59A

  

Short Circuit Current (Isc)

 

7.81A

  

Maximum Power Current (Ipm)

  

14.40%

  

Module Efficiency (%)

 

47.5 'C

  

NOCT

 

-0.485%/'C

  

Temprature Coefficient (Pmax)

 

-0.36%/'C

  

Temprature Coefficient (Voc)

 

0.053%/'C

  

Temprature Coefficient (Isc)

  

994*1640*46m

m

 

Dimensions

  

Table 1: electrical features of a solar cell [2] 

B.  Analyzing the external factors (temperature, 

reflection angle
External power and solar cell voltage decreases by the 
increase of temperature but the flow of short connection 
decreases while the power of cell by the increase of sun 
reflection increases. The result of these two factors has been 
shown by simulated software, voltage curve and the power 
in the figures 3 and 4 [1]. 
 

 

Fig2: modeling solar cells in Simulink atmosphere in degree and 

variable reflection 

 
 

Ashkan Borji

1

, Mohammad Niyazi 

1

, Siroos Hemmati

2

  

١-

 Department of  Electrical Engineering  Kermanshah branch, Islamic Azad University, Kermanshah, Iran.

2- Department of  Electrical Engineering   Kermanshah University of  Technology, Kermanshah, Iran.   

Askanborji@gmail.com

M.niyazi_en@yahoo.com

S.hemmati@kut.ac.ir

 

The influence of external and internal 

parameters of a solar cell on the output power 

C

Journal of Middle East Applied Science and Technology (JMEAST) 

 

ISSN (Online): 2305-0225 
Issue 15(4) [Supplementary Part IV], September 2014, pp. 1069-1071 

 

1070 

 

 

 

 

 

Fig 3: the v-I curve of solar cell in degree and variable reflection 

 

 
 

 

 

Fig 4: the power curve of solar cell in degree and variable 

reflection 

III.  M

ATERIALS AND METHODS

 

 
According to the mentioned chapters in the first part of the 
essay and the reached results from simulating and 
researching, we want to simulate and analyze the process of 
solar cell, considering internal factors like R.I and the 
factor. The permanent relation that exists in the solar panel 
is like the following [4]: 
 

sh

s

c

q

nkT

I

R

B

V

o

L

R

I

R

V

e

AI

AI

I

s

c

]

1

[

]

[

 

 

that in the relation the above parameters T, L0, 1L, Ve, K, q, 
Rsh, Rs, B, A by sequent represent the number of parallel 
needle, the amount of occult cells in each needle, occult 
resistance, the barroom of an electron, Boltzmann factor, 
external voltage, external flow, the flow of short connection, 
the flow of reversed soak and the temperature of the 
atmosphere. 
According to the analyzed factors, simulating the above 
relation in Mahtab software considering the impressive 
parameters would be like the following. 

 

Fig 5: modeling the solar cells in simulink atmosphere in 

temperature, efficiency, flow and resistance 

IV.  O

UTCOME AND DISCUSSIONS

 

The achieved results from above simulation, considering the 
given information and variations are represented in the 
following table and the impressions of each of them on 
power and external voltage have been analyzed. 

A

I

R

R

C

Temp

A

I

L

s

sh

o

1

1

.

0

1000

1

27

10

1

9

 

V-I                                              V-P

 

 
 
 
 
 
 

Fig 5: 

v-l curve and v-p curve

 

V-I                                              V-P

 

 

                              

                               40c      
                                      
               26c 
 

 

 

Fig 6:

 v-l curve and v-p curve with degree variation 

V-I                                              V-P 

 
 

                                     1.2 
                        
       
                    1 

 
 

 
 
 

Fig 7:

 v-l curve and v-p curve with efficiency variation 

Journal of Middle East Applied Science and Technology (JMEAST) 

 

ISSN (Online): 2305-0225 
Issue 15(4) [Supplementary Part IV], September 2014, pp. 1069-1071 

 

1071 

 

 

V-I                                              V-P

 

 

                        1.1A   
 
   0.9A 
 

 
 

Fig 8: v-l curve and v-p curve with L1 variation 

 

V-I                                              V-P

 

 
 

                       100 
  5 

 
 

 

Fig 9: v-l curve and v-p curve with Rsh variation 

 

V-I                                              V-P

 

 
                         0.05 

       0.1 

 0.2       

 

 

 

Fig 10:

 v-l curve and v-p curve with Rs variation 

V.  CONCLUSION 

According to the achieved results from the analysis of the 
solar panel and analyzing the impressions of different 
parameters on the final efficiency, it has been found that the 
temperature and external resistance have the most impact on 
output power and external voltage of a solar cell orderly and 
also using this energy will be useful economically in long 
terms. 
It became clear that the increase of temperature improves 
the v-p and v-I curves. 

R

EFERENCES  

 

[1]  Razaghi, Majid and Mousavi, Sayed Mahdi, solar cell analysis of 

temperature variation and amount of reflection, the first national 
assembly of new and clean energies,2013. 

[2]  saied Zolfaghari , Mohammad Reza, presenting a new method to 

model the impression of the temperature in power and producing solar 
panels energy, forth conference of power station, Tehran, Iran. 

[3]  Heydari Doust Abad, Hamed Vaki Pour, representing a new method 

to find the most power of solar cells based on the exploit of the 
extermum period of the system, twenty eighth international 
conference of electricity, Tehran, Iran, 4-6 November 2013. 

[4]  Energy Balance Analysis of Small Satellite in Low Earth Orbit (LEO) 

,Sung-Soo Jang. and Jaeho Choi,2005. 

[5]  J. Ekanayake, k. Liyanage, A.Yokoyama,N.Jenkins, A John Wiley & 

Sons Ltd, "Smart Grid Technology And Applications" book , 
Publication, 2012. 

[6]  M. S. ElNozahy and M. M. A. Salama, "Technical impacts of grid-

connected photovoltaic systems on electrical networks—A review", 
Journal of Renewable and Sustainable Energy, 2013. 

[7]  J. AristizAbal, J. Hemandez, W. Moreno, G. Gordillo, “Development 

of a System for Measuring The Parameters DeterminingThe Quality 
of Electrical Power Generated By Grid-Connented PW System”, 

Photovoltaic Specialists Conference, Conference Record of the 
Thirty-first IEEE,PP. 1738 - 1741, Jan.2005. 

 

Journal of Middle East Applied Science and Technology (JMEAST) 

 

ISSN (Online): 2305-0225 
Issue 15(4) [Supplementary Part IV], September 2014, pp. 1072-1079 
 
 

1072 

 

 

Abstract-The social organizations are some of the foremost 
phenomena at present time. Many requirements are met by 
organizations in modern world. By the aid of their 
resources including technology, information, financial 
sources, and human capital the organizations meet the 
social requirements. The human capital of the organizations 
is deemed as the paramount and most effective 
organizational sources since other sources are perishable 
but the human capital can be developed. To realize this 
objective, the reviewing scientific method has been 
employed. The results of this investigation indicate that the 
growth and excellence of human capital in the 
organizations might be only possible through organizational 
education and training. This issue suggests that 
organizational investment in growth and development of 
human capital is more efficient than investment in physical 
and equipment- related dimensions and it contributes the 
organizations in realization of their goals and growth and 
development of organizations will help to national growth 
and sustainable development from various dimensions. 
Thus, organizations should change their attitude from 
equipment- centered view to education and learning- 
centered approach. Of course, fulfillment of this important 
point requires serious investment in the field of training and 
education.  

 

Keywords-Organizational Education and Learning, Human 
Capital, Economy of Education and Training, Sustainable 
Development   

 

 

                                                            

1

 - Assistant professor in Comprehensive University of Imam 

Hossein, Iran. 

2

 - A researcher in Comprehensive University of Imam Hossein, 

Iran.  

 

I. 

Introduction 

Rather than making effort for growth and flourishing the 
potentials in personnel and directors, organizational 
education and learning tend to create and improve the 
needed capabilities in personnel for efficient doing of their 
occupational tasks based on occupational and 
organizational requirement. It is obvious that along with 
complexity of conditions in the organizations, the 
organizations are placed under new conditions and as a 
result the personnel will need to new abilities.  

The modern system of organizational education and 
learning requires investment in all dimensions. It is a matter 
of fact that in order to design and execute this system 
efficiently, the economic, human, social, and cultural 
dimensions of this field should be accurately analyzed 
unless otherwise it is possible for the analysts to become 
confused with only an economic outlook at this system and 
they may be moved to this point that organizational 
education and learning is not cost-effective.  

Education and learning are assumed as the most essential 
and foremost mechanisms for training of organizational 
human resources. The organizations have no alternative 
except for development and improvement of education and 
learning process to train the professional manpower. On the 
other hand, education and training is a cost-consuming 
activity and a major part of organizational capital and 
incomes are devoted to it. Lack of a comprehensive 
analysis in economic, cultural, social, organizational, and 
design dimensions and especially execution of education 
and training system may expose the organizations to some 
challenges. The present research is intended to study and 
explore the education and training system from the 
perspective of human capital and economic view and role 
of both of them in sustainable development. To meet this 
end, the researcher should search for and find the answers 
to the following questions:  

The analysis of organizational education and 

training system from economic view and human 

capital and its role in sustainable development

 

Reza Hosseinpoor

1

, Morteza Karami

2

 

Journal of Middle East Applied Science and Technology (JMEAST) 

 

ISSN (Online): 2305-0225 
Issue 15(4) [Supplementary Part IV], September 2014, pp. 1072-1079 
 
 

1073 

 

1- What are the paramount attitudes in analysis of 
investment in the field of training and human resources?  

2- How can educational and learning investments be 
justified from economic viewpoints?  

3- What is the effect of organizational education and 
training systems on growth and development of human 
capital and finally on sustainable development?  

Overall, doing a series of special and certain tasks and 
practices is necessary with respect to raison d’être of human 
resource organizations and various social institutions in 
human communities. These are the practices regardless of 
which the community could not survive. In this course, 
several personnel and human resources and manpower are 
employed and used in these social organizations to do some 
of the special tasks assigned to the given organization 
through planning, management, activity, supervision, and 
executive measure. In other words, each of organizational 
members composed of manager, CEO, chief, and 
subordinate does specific task. Simultaneously with 
developing science and technology and being more 
specialization of administrative and organizational jobs, the 
social organizations hold special various theoretical and 
practical trainings for the personnel after attracting them 
and before employing them during several phases and 
depending on sensitivity and the needed expertise of the 
given task. It is clear that profitability and effectiveness of 
such specialized and organizational trainings may be 
realized when they are aligned with the fundamental goals 
and missions of the organization and they are organized 
proportional to nature and essence of the given 
organization. Thus, extraction of general educational 
principles and fundamentals is necessary and required 
beforehand; the principles which each of organizational 
personnel or members should learn them only because of 
presence in an organization with any administrative and 
specialized position and they should be considered and 
utilized as the basic principles of training at phase of 
planning for educational courses and in codification of 
textbooks. As a result, one can discuss about the 
compliance of educational bases in an organization with 
missions and tasks of that organization on the one hand and 
essence and nature of the organization on the other hand.  

 

II. 

Theory and history of research 

II-1- Human resources educational and training system and 
its objectives 

From the very beginning, education and training have 
played essential role in the rites and customs, beliefs and 
values, attitudes and behaviors, and knowledge and skills in 
the community have been transferable and continued 
through educational and training systems. The main 
mission of educational systems should be introduced as 
proper training of human resources. It is the proper training 
that is the main objective in any educational system and it 
may enable the personnel to achieve human and divine 
values since the potential talents of human will be gradually 
actualized in light of proper education and training and they 
grow and are developed (Vahidi, 2001).  

The educational system is responsible for important tasks 
and practices including culture transfer (cultural 
transferability), social training (sociability), professional 
and expert training, innovation and comprehensive growth 
of personality for the personnel. The efficient educational 
system is one that considers uniformly human from various 
moral, rational, emotional, and physical aspects so that the 
human can be prepared for execution of basic mission as 
the organizational capital with the maximum level of 
competency and efficiency.  

With respect to various missions and tasks in organizations, 
the education and training possess different essence and 
goals out of which one can mention the foremost common 
goals which are noticed in organizations as follows:  

1. Increase in knowledge, information, and professional 
capability and preparation of personnel for doing new tasks 
and responsibilities  

2. Creating appropriate behavior and proportional to stable 
values in community of personnel  

3. Rising job satisfaction and improvement of spirit and 
correlation among personnel with organizational objectives  

4. Creating spirit of collaboration and cooperation among 
personnel toward organizational goals  

5. Preparation of grounds for growing creativity and 
flourishing and innovation in personnel  

6. Reducing job accidents and losses and various 
organizational costs  

7. Contribution to organizational changes under necessary 
conditions (ibid, pp 126-127)  

II-2- Economy of education  

Journal of Middle East Applied Science and Technology (JMEAST) 

 

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As the most integrated branch of social- human sciences 
during its development period and with respect to the facts 
in industrial communities and given the developments 
caused by constant change and developing technology and 
industrial structure, the economics has been exposed to 
several problems and it has presented the applied strategies 
and new theories in order to give solution and or for 
interpretation of modern economic realities caused by 
behavior of actors (family, enterprise or government) in 
these communities. Some of these theories have led to 
arising of new branches in economics. On the other hand, 
with respect to the personal interest and researching plans 
in which they participate, the researchers in social sciences 
employ the knowledge as a tool to analyze various issues 
and with respect to the facts in their given community even 
in some fields such as, economy of divorce, economy of 
theft, rent economy and the like (Emadzadeh, 2003).  

The economy of development or economy of education is 
deemed as these types. However, economics has referred to 
relationship of training with human capital and thus long 
run development in the communities from the point of its 
birth, the economy of education has drawn the attention 
from some of economists as one of the applied branches of 
economics during past decades.  

The theoretical economy of education is usually concerned 
with 1) Determinant factors for presentation and selection 
of training for the economic benefits out of personal cost 
(investment) in education and future profits in the fields of 
wage and income; 2) The effects of training on individual 
and the community where s/he lives in and long run 
economic- social development; and 3) The needed 
recommendation for the efficient reforms in educational 
system. Theories proposed by some researchers like Becker 
and Barro within the narrow economics – in neoclassic 
major denotes emphasis remained on cost- profit analysis in 
short term while the more essential role of education in 
economy is to develop the current value- driven system and 
transferring it to a system proportional to industrial and 
trans- industrial age for comprehensive socioeconomic 
development and intellectual- cultural flourishing and 
creating civilization transformations. Regardless of such 
development, the needed institutional and organizational 
reforms will not succeed for economic development (ibid, 
87).  

The points derived from history of growth of modern 
economy suggest that by aiming at fast growth to achieve 
economic position in advanced industrial world like some 
of countries in southeastern Asia, the less- developed 
countries have tried to invest further in education sector 
with respect to their economic capacity.  

II-3- Analysis of training investments from economic 
theories viewpoints  

One of the serious topics in the field of economy of 
education is to explore the relationship among 
organizational training and learning with productivity of 
human capital in workplace. The main question is that if 
there is any relationship among education level in personnel 
and the rate of their productivity. The history of study on 
relationship among education and productivity in developed 
nations returns to 1960s when for the first time some 
economists like Meisner and Schulz tried to justify and 
interpret this relationship logically and with respect to 
academic criteria. During four past decades, they have 
shown the research developments in this regard within 
various dimensions. The scientific findings indicate that the 
relationship among productivity and education could be 
examined and analyzed by using four major theories under 
titles of theories of human capital, screening, filter, and 
interaction with technical changes (Mardiha, 2003).  

Most of researches could indicate the undeniable 
relationship among education degree, income level, rate of 
productivity in human resources, and economic growth. It 
should be implied of course that the empirical evidences 
and the conducted researches, which confirmed these 
theories, have mainly demonstrated the effect of educatin 
on rate of productivity at microeconomic level and through 
study on performance of personnel inside the factories and 
industrial and agricultural centers. Hence, it necessitates 
conducting further researches and at macroeconomic level 
(regional and national) as well so that to clarify existing of 
this relationship. In any case, the classic theories of 
microeconomics were argued that the education might 
affect on productivity by three ways. The first is that the 
education trains valuable skill to the personnel and it causes 
rising the rate of their exploitation in the business and for 
this reason the directors should also increase their salaries 
and income by improving their educational degrees. This 
attitude is confirmed according to human capital theory. 
Secondly, education does not grant any valuable skill and 
feature to the personnel, but it only puts some information 
at directors’ disposal thereby they can recognize high- 
quality personnel from ones with lower quality. As a result, 
education and training is only deemed as one signal (sign) 
and thirdly education does not increase rate of productivity 
but give this opportunity to ones, who are more benefitted 
from it to act in more dynamic professional environments 
while dynamics of environment is a factor that improve rate 
of productivity in human resources per se (Emadzadeh, 
2003).  

 

Journal of Middle East Applied Science and Technology (JMEAST) 

 

ISSN (Online): 2305-0225 
Issue 15(4) [Supplementary Part IV], September 2014, pp. 1072-1079 
 
 

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II-4- Human capital theory  

The main theme in all the theories which are concerned 
with economy of education is to define the relationship 
among the educational system with economic phenomena 
including employment market, productivity of human 
resources, the relationship among employee and employer, 
theory of salaries and wage and job satisfaction level. The 
human capital theory is one of most well-known theories, 
which possesses longer history and background.  

Adam Smith, father of economics, may be assumed as the 
first person, who was interested in using economic theories 
in research and study on social relations. In fact, Human 
Capital Theory expresses that from individual’s point of 
view the education is deemed as investment. The value of 
this training includes direct and indirect monetary costs, 
which a person or organization has to pay for its 
achievement and or dispense with them. If the future 
benefits are higher than value of costs, the education will be 
profitable and long run investment for the person and 
organization. In addition, the value of social benefits of 
education should not be also ignored. Thus, it can be 
mentioned that human capital theory tends to prove this 
assumption that the human is the foremost factor among the 
effective factors on production process. This paradigm from 
Adam Smith was agreed by the economists based on which 
with education the humans may be converted into capital 
and wealth for them and community (Vahidi, 1994).  

The human capital theory looks at education and training as 
a type of investment in skills and assumes it as a method to 
increase productivity rate of human resources. This 
paradigm is led to presentation of some growth models in 
which the productivity is assumed as the result of various 
performance caused by change rate of access to education. 
The primary studies in this regard signify this fact that 
educational changes strongly affect on economic growth. 
For example, Denison (1979) estimated that about one- fifth 
of growth in US national income during years (1948-1973) 
can be attributed to rising of educational level in human 
resources in organizations. Regarding qualitative 
improvement in US human resources, the investigation 
done by Jorgensen and Frameni (1993) assumes one fourth 
of economic growth during years (1948-1968) caused by 
rising level of literacy in human resources. Similarly, study 
on economic growth among six member states in 
Organization of Economic Cooperation and Development 
(OECD) for seventy- year time period (1913-1984) 
indicates that more access to education may highly justify 
the growth of productivity rate during this period (Wolff, 
2007). The aforesaid research findings shows this point that 
the higher rate of enrollment at high schools and higher 

education among the employees at age higher than 15, the 
higher productivity rate will exist in human resources as 
well. So as a result, it can be implied that productivity rate 
in workforce in developed countries is higher than in 
developing nations.  

II-5- Economic applications of human capital theory in 
training and education of human resources  

As the economists define, human capital theory proposes a 
very simple interpretation about role of education. Passing 
through various educational courses creates several skills, 
knowledge, insight, and capabilities for which there is some 
demand in the market. This causes that the given person to 
achieve further occupational opportunities with higher 
income if s/he receives more training. The education is 
generally deemed as public education while special 
trainings (specialized and professional) are postponed to the 
time when the person is employed (Bills, 2003).  

In Becker’s opinion, the educational system provides the 
needed conditions for the person to acquire occupational 
and professional capabilities by presentation of primary and 
basic trainings, but what it causes distinction of a person to 
other one is the superiority in special and professional 
skills, which are acquired by participation in the higher 
education centers or on-the-job training courses.  

Another application of human capital theory is to pay 
attention to time factor as a type of valuable restricted 
capital and its relation with subject of education. Time- 
education relationship can be notices regarding some issues 
including educational risk- taking and emigration 
(immigration).  

The most interesting point of Becker’s theory should be 
search in application of human capital theory to define 
behavior of the educated persons in relation with the family 
institution and what it called ‘economy of family’. This 
relationship forms from the very beginning phases so that 
as the educational level is increased in human capital, the 
prices of time that s/he allocates to a certain subject will be 
also increased. Here, Becker refers to human capital 
proportion in marriage and calls high quality as marriage of 
high- qualified men with the women. As a result, if a man 
with high quality of human capital chooses a woman with 
the similar quality as his wife, this marriage can be called 
positive unity (Sandemo, 1994). According to Becker’s 
view, some issues like business and income of family, 
demand for child and time and their quantity, training of 
children, and leisure times all have several economic effects 
and consequences are exactly affected by size and amount 
of human capital from which the spouses are benefitted. For 

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instance, one can notice the relationship among period of 
child- bearing with economic growth and role of human 
capital in it. When the economy grows, the rate of birth is 
reduced so the rate of enjoying education is improved so 
the mean age for childbirth rises. According to opinion of 
Becker and Barro, improvement of education will also 
develop technological advancements (Becker and Barro, 
1988).  

What it can be mentioned according to human capital 
theory about education and training system is that the 
investment of organizations in training and education of 
directors and experts includes several individual, 
organizational and even familial effects. The growth and 
training of personnel improves their capabilities and 
whereas education and training system creates and 
improves new knowledge and skills in the learners then it 
will cause the works to be done with lower economic and 
social costs and this will lead to economic growth in the 
long run.  

In addition, time is important as a significant element in 
activities of organizations. The educated personnel 
appreciate more value for the time and use it better.  

In addition to these direct effects, education and training of 
personnel increases their familial satisfaction. The educated 
persons are potentially able to moiré appropriate marriage, 
more proper training for the children, and adaptive 
resolving of their own familial conflicts. The familial 
appropriate conditions for the personnel improve their 
organizational actions.  

 

II-6- Economy of organizational higher education  

The second half of twentieth century can be assumed as the 
time of emerging of economic view toward educational 
system and in particular the higher education. The 
phenomenon of globalization has played essential role in 
emerging and spreading of this attitude. The globalization 
phenomenon tried to introduce higher education as a 
jumping platform for economic development and to 
demonstrate its practical and technical value. The 
achievement in higher education is deemed as rising access 
to scientific researches, which leads to holding race and 
competition at individual, organizational, and national 
levels. This competition spreads within the borders between 
universities and among higher education centers at 
international level and enter them in modern classification 
of the developed, developing, and retard groups. If the 
countries were shown by means of terms and division and 

position of them in world economic cycle yesterday, these 
are universities and higher education centers which are 
characterized by one of these features today and they are no 
longer assumed as winners or losers of economic lexicons 
and or exclusively specified to financial and material 
investors. At this time, new winners and losers are members 
of faculties and universities. The latest research findings 
indicate that the learning is the key for arrival at 
knowledge- based community and anyone can build and 
produce knowledge through training (Brewer et al, 2003).  

According to this attitude, the universities and higher 
education centers in organizations are assumed as the key 
for economic growth in the given organizations. Thus, the 
economic analysis of higher education is deemed as a new 
opportunity for the universities in the knowledge- based 
economy. Under this condition, the universities and higher 
education centers are considered both as effective factors 
for economic growth and as a new and intact ground for 
profitable activities such as a new and attractive industry 
for investment by the investors (Kerr, 1982). For this 
reason, some analysts like New (1988) argues that the 
education in general and higher education in particular have 
lost their position as a social procedure and policy everyday 
more than ever and they are noticed growingly as economic 
tools while the sociologists, politicians, planners, and 
directors and even parents mostly utilize from so-called 
terms among the economists- which denote economic view 
toward the education- like rate of return, growth in human 
interests, effectiveness, efficiency, productivity, and 
personal cost creation (Watson, 1996).  

Dominance of economic view to education is manifested, 
especially about higher education so that during two final 
decades of twentieth century even in China- that claimed 
developing education as main tools for realization of social 
justice- it was assumed as a type of investment in human 
capital. For this reason, it can be anticipated that in twenty 
first century, investment in education and especially in 
higher education will be converted into the greatest field of 
economic investment in organizations and communities 
(Jones, 1996).  

II-7- Science and technology  

Contribution to growth and improvement of Information 
Technology (IT) is one of the consequences of 
organizational education and training system in the 
organization. Information Technology and Communication 
(ITC) has provided valuable opportunities for economic and 
social development based on information to organizations 
(Sarkar Arani, 2005). If economic superiority was a 
function of natural resources and ratios of production 

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factors (coefficients of capital to labor) in the past, but 
human’s brain is deemed as essential factor today. 
Compared to the previous centuries, twentieth century and 
the current century possess a lot of advantages, but 
probably none of them is as valuable as the factor of 
scientific development. Before Gutenberg’s invention of 
printing at the half of sixteenth century, Europe presented 
about 1000 books every year. Four and half century later 
(1950), this number became 120000 (UNESCO Regional 
Summit, 1991). In 1965, the quantity of world daily 
journals was about 1000 titles while today the size of 
existing data in a normal CD is more than 2000 books with 
200 pages in normal size (Khalkhali, 2002). These 
quantitative developments show the fast changes in the 
field of human sciences and knowledge. The resulting 
outcomes from the fast changes in field of knowledge can 
be mentioned at least in five cases. These cases affect on 
higher education system more than ever:  

● Instability: It means the information and data are quickly 
reorganized.  

● Outdated nature: Some information becomes quickly old 
and useless.  

● Professional and occupational multiplicity: It means that 
a person has to change his/ her job periodically.  

●  Continuous training and apprenticeship: That is the 
learning is assumed as a permanent process and a tool to 
adaptation to new circumstances.  

●  Communication network: It means that the data and 
information can be widely disseminated and spread (Abbasi 
and Madandar, 2000).  

In fact, the governing new paradigm over economy of 
education is based on this assumption that the education 
provides the maximum benefit for personnel and 
organizations and tendency to participate in educational 
institutes is deemed as an individual choice and decision to 
access to employment market at better position. This 
approach causes creating the possibility for competition 
among personnel to further, faster, better access to 
education that is not necessarily negative since individual 
mobility and progress will be finally followed by 
constructive social outcomes (Sarkar Arani, 2005).  

II-8- Economic outcomes of organizational and higher 
education and their role in sustainable development  

The education and in particular organizational and higher 
education has been further noticed than other educational 

courses due to economic outcomes and it has been 
considered as one of the main reasons for development of 
countries and organizations. This issue is especially 
addressed in analysis of economic growth at countries from 
southeastern Asian region by the economists. The studies 
which have been mainly conducted during two past decades 
witnessed this effect so that the findings of research from Li 
and Liu and Wong (1994) show that the economic growth 
in two countries of South Korea and Taiwan has been 
mainly affected by their human capital. Also in his 
research, Lin (2003) tried to examine the undeniable effect 
of higher education in economic growth in Taiwan so that 
one percent increase in capital for higher education have led 
to 19% increase in production of this country during the 
given period of time (Lin, 2004). Voon (2001) had acquired 
the similar results to findings of Lin’s research in Hong 
Kong during 2001. Similarly, the investigation of Tilek 
(2003) about relationship among organizational and higher 
education with Human Development Index and parameter 
of sustainable development showed in 49 Asian countries 
that in these communities:  

● There is strong relationship among organizational and 
higher education with economic sustainable development.  

● The rate life expectancy is increased and childbirth rate is 
reduced with spreading organizational and higher 
education.  

● The marriage methods are changed and its age is 
postponed.  

● A very negative strong relationship is observed among 
rate of enrollment in higher education with poverty; and  

● A very positive strong relationship is seen among rate of 
enrollment in higher education with rising income level.  

One of the most distinct economic effects of organizational 
and higher education system can be searched in relationship 
between universities and work market and employment 
system. However, this relationship does not express new 
subject and the economic planners are aware of its 
importance for several years, intensification of world 
competitions requires looking more deeply at performance 
and position of organizational and higher education 
systems. It is clear that the large- size and leading 
enterprises tend to choose their needed human resources 
among the educated persons of the best universities since 
labor market is classified according to value and reputation 
of enterprises. On the other hand, the universities and 
higher education institutes are also ranked according to the 
opportunities, which are created for employment of their 

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graduates in large- size and leading organizations and 
enterprises. In fact, a mutual relationship and effect have 
been created among system of employment with higher 
education system. For this reason, employment of 
graduated people from higher education centers measures 
the effectiveness of higher education like an economic 
criterion (Sarkar Arani, 2003).  

When Castles (1996) divided world workers into four main 
groups of high- value laborers (Knowledge- Workers), 
producers with high- capacity (workforce with lost cost), 
producers of raw materials, and unemployed producers 
(workforce without value), he apparently showed that the 
knowledge- workers are the product and output from a 
modern and dynamic higher education system. For this 
reason, the subsequent changes during recent years exerted 
in higher education system at developed countries and 
proposing some subjects such as accreditation in 
universities indicate that there is a very close and 
interrelated competition among these institutes. Rather than 
proving the universities as the paramount centers and 
sources of training of knowledge- based workforce in this 
competition, they have been involved in perfect competitive 
economy to attract financial sources. This competition 
conveys a completely clear message:  

Table 1: Composition of national wealth based on role of 

investment in various points of the world for 1994 

 

Geographical 

zone  

National 

wealth 
(based 

on per 

capita 

for one 

thousand 

million 

USD 

dollars)  

Human 

capital 

(in 

percent)  

Physical 

capital 

(in 

percent) 

Natural 

capital 

(in 

percent) 

North 

America  

326 76  19  5 

Western 

Europe  

237 74  23  3 

Middle 

East 

 

150 43 18 39 

South 

America  

95 74 17  9 

 

Eastern Asia 

47 

77 

15 

South & east 

of Africa  

30 65 25 10 

West Africa  

22 

59 

18 

21 

South Asia  

22 

65 

19 

16 

 

III. 

Conclusion 

Despite of historical background, it has been only during 
several past decades that the economic growth theories has 
assumed role for education and training system in 
formation of national wealth (human capital). Before this 
time according to viewpoint in these theories, economic 
growth was assumed as the result of population growth and 
technological advancements and this fact did not matter that 
education might play role in rising national wealth. In any 
case, the further researches proved that among various 
forms of capitals, the human capital has the greatest share 
in formation of national wealth. The comparative study by 
World Bank has identified the share of investment types in 
formation of national wealth separately based on various 
regions in the world and for 1994. As it shown in Table (10, 
the World Bank has evaluated composition of national 
wealth separately based on three types of human, physical, 
and natural capitals and due to difficulty in measurement 
and conversion of quality into numerical quantity, the role 
of social capital has not been addressed. Nonetheless, the 
given findings are evident that the share of human capital in 
composition of national wealth is ranged from two third to 
three quarters in all regions of the world- except Middle 
East region. Similarly, the portion of physical capital is 
among one quarter to one sixth in all of regions. It is 
interesting that the natural capital has very little share in 
national wealth at advanced areas in the world so that the 
portion of this capital in national wealth is less than 5% in 
advanced areas of the world namely North America and 
western Europe. Inversely, the portion of human capital 
(43%) in formation of national wealth at Middle East is 
even less than in southern, eastern, and western countries in 
Africa. This finding may clearly demonstrate the raison 
d’être for economy of education and show that all of the 
efforts and measures, which have been made by economists 
to enrich this field of studies is based on this fact that 
despite of richness of natural capital, the educational 
investment in any country and in each of educational 
courses and for any person- female or male- includes a lot 
of benefits, which could never be ignored. This issue 
suggests that investments of organizations in growth and