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Human Capital and Economic Growth: Pakistan, 1960-2003

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This paper investigates the relationship between human capital and economic growth in Pakistan with time series data. Estimated with the Johansen (1991) approach, the aggregate production function rejects one version of the endogenous growth formulation. But the fitted model indicates that the output elasticity of human capital may be expected to increase with foreign technical progress. Higher productivity of secondary schooling than in OECD economies is consistent with the low levels so far attained in Pakistan. High returns to health spending compare very favourably with industrial investment. Human capital is estimated to have accounted for just under one fifth of the increase in GDP per head, a figure that is probably biased downwards because of the unmeasured dimensions of human capital.

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  • Abbas, Qaisar & Foreman-Peck, James, 2007. "Human Capital and Economic Growth: Pakistan, 1960-2003," Cardiff Economics Working Papers E2007/22, Cardiff University, Cardiff Business School, Economics Section, revised Dec 2007.
    • Handle: RePEc:cdf:wpaper:2007/22
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    3. Syed Ammad Ali & Qazi Masood Ahmed & Lubna Naz, 2016. "Public spending on human capital formation and economic growth in Pakistan," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 23(1), pages 1-20, June.
    4. Faisal Sultan Qadri, Faisal & Dr. Abdul Waheed, Waheed, 2011. "Human Capital and Economic Growth: Time Series Evidence from Pakistan," MPRA Paper 30654, University Library of Munich, Germany.
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    7. Sultan, Faisal & Tehseen, Syed & Arif, Imtiaz, 2009. "Human Capital and Economic Growth: The Quest for the Most Relevant Level of Education in Pakistan," MPRA Paper 59181, University Library of Munich, Germany.
    8. Habibi, Fateh & Zabardast, Mohamad Amjad, 2020. "Digitalization, education and economic growth: A comparative analysis of Middle East and OECD countries," Technology in Society, Elsevier, vol. 63(C).
    9. Masood Ahmed Qazi & Syed Ammad, 2021. "Public investment efficiency and sectoral economic growth in Pakistan," Development Policy Review, Overseas Development Institute, vol. 39(3), pages 450-470, May.
    10. T. Vinayagathasan & S. Vijesandiran, 2015. "Dynamic Relationship between Human Capital and Economic Growth in Sri Lanka: A Co-Integration Analysis," Growth, Asian Online Journal Publishing Group, vol. 2(2), pages 20-29.
    11. Ibrahim, Taofik, 2016. "Human Capital-Growth nexus: the role of Government Spending on Education and Health in Nigeria," MPRA Paper 73712, University Library of Munich, Germany.
    12. Rimsha Javed, 2021. "Nexus Between Economic Growth, Health, and Education in Pakistan: An ARDL Bound Testing Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 11(6), pages 56-65.
    13. Ejiro U. Osiobe, 2019. "A Literature Review of Human Capital and Economic Growth," Business and Economic Research, Macrothink Institute, vol. 9(4), pages 179-196, December.
    14. mashkoor, Aasim & ahmed, Ovais, 2015. "Theory of Economic Development (Pyramids of Economic Development)," MPRA Paper 63370, University Library of Munich, Germany.
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    17. Mussarat Khan, 2016. "Contribution of female human capital in economic growth: an empirical analysis of Pakistan (1972–2012)," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(2), pages 709-728, March.
    18. Mashkoor, Aasim & Ahmed, Ovais, 2015. "Theory of Economic Development (Secondary Stage)," MPRA Paper 63660, University Library of Munich, Germany.
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    More about this item

    Keywords

    Human Capital; Economic Growth; Cointegration; Pakistan;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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