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Determinants of Economic Growth Under the Role of Human Capital

Author

Listed:
  • Muhammad Zahid Naeem

    (Assistant Professor, Department of Economics, University of The Punjab, Pakistan)

  • Wajid Alim

    (Assistant Professor, Lahore School of Accountancy and Finance, University of Lahore, Pakistan)

Abstract

Pakistan is in the race of economic development like other developing countries. The government of Pakistan, like that of other developing countries would invest in human capital at the expense of its economic growth. This issue is more sensitive in nature, which is going to explored through the relationship between human capital and economic growth in case of panel of eleven (11) countries. This investigation is accomplished by using the panel data during the period 1992-2014. The gross domestic product (GDP) as the economic indicator and the investment, net secondary school enrollment, health expenditures, total labor force and life expectancy at birth as the human capital indicator. The panel econometrics tools like Panel Augmented Dickey Fuller (ADF) unit root test, Pooled OLS test, fixed effect test, redundant variable f-test and Hausman test are applied to investigate such relationship. The results derived by applying these panel econometrics tools show that there is a long term relationship between the real gross domestic product (GDP) and human capital in fixed effect OLS test.

Suggested Citation

  • Muhammad Zahid Naeem & Wajid Alim, 2021. "Determinants of Economic Growth Under the Role of Human Capital," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 7(3), pages 1-87–104, September.
    • Handle: RePEc:rfh:jprjor:v:7:y:2021:i:3:p:87-104
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    GDP; Human Capital; Life Expectancy; Investment;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid

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