Purpose: The purpose of this paper is to examine the impact of national investment in vocational education and training (VET) on the economic growth through the mediating role of social inclusion. Design/methodology/approach: This study is based on a panel data of 31 Organisation for Economic Co-operation and Development countries for 15 years collected through secondary sources. Findings: The statistical results of the study have supported the entire hypotheses. Particularly, the results demonstrate that the social inclusion strengthens the contribution of VET in the economic growth. Practical implications: This study offers various policy implications for the policy makers of developing countries. Particularly, the policy makers of developing countries need to emphasize on social inclusion to enhance the contribution of national investment in VET while following the vocational education models of developed nations. Originality/value: This study offers its theoretical contribution in the literature of VET by highlighting a mediating mechanism to explain how national investment in VET can contribute in economic growth through social inclusion. © 2018, Emerald Publishing Limited.
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