This paper reviews major theories related to the role of education in economic development and presents results of several empirical cross-national studies that have analyzed this relationship. Most research on the role of education in developing nations has concluded that modernization of national educational systems will facilitate national economic growth, although recommendations diverge concerning whether the modernization should be based on a western model or a nationalistic model. As an alternative to these schools of thought, this research offers an interpretation of the role of education and development based on dependency theory. Dependency theory maintains that because all aspects of society in developing nations are influenced by economic dependence on industrialized nations, modernization in one sector such as education will not necessarily facilitate national economic growth. Dependency theorists argue that the failure of developing nations to modernize is due to dependency ties to developed nations and to an economic base that is insufficient to support the modernization which has been grafted onto it. A series of empirical cross-national longitudinal analyses of the relationship between educational and economic expansion was performed to test this dependency theory interpretation. The specific focus of the studies was the impact of educational enrollment levels at primary and secondary school levels in 1955 and economic development for 1955 to 1970. Findings indicated that educational expansion did not seem to facilitate national economic growth during this time period. The conclusion is that the dependency theory interpretation comes closer to explaining the relationship between education and economic development than either a western or a nationalistic development perspective. (DB)