Abstract:The importance of education to national competitiveness and future development is self-evident. Resource input secures educational development. However, the efficiency of educational resources, their input-output ratio, and their effects on national competitiveness are matters of concern. This study aims to measure the efficiency of educational resources of a country within the scope of financial capacity. This study further evaluates the effects of educational efficiency on national competitiveness. Data envelopment analysis was applied to measure the efficiency of educational resources, and two-way fixed-effect panel data were used to evaluate the effects on national competitiveness. This study corroborated that among 53 countries, those with high educational efficiency and stable development are mainly concentrated in East and Southeast Asia. According to different levels of development and/or regional location, the driver of education is only significant in the most competitive economies. In addition, given the development stage, governments should depend on their own level of competitiveness in determining priority areas of development.