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Human Capital and Economic Growth: Time Series Evidence from Pakistan

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  • Faisal Sultan Qadri, Faisal
  • Dr. Abdul Waheed, Waheed

Abstract

Human capital is generally considered as a positive contributor in the economic growth. In this study, we estimate this relationship using time series data of Pakistan for the period 1978 to 2007. A health adjusted education indicator for human capital is used in the standard Cobb-Douglas production function confirms the long run positive relationship between human capital and the economic growth in Pakistan. A sensitivity analysis was also performed in order to check the robustness of the initial findings. The estimation results supported the findings of the previous studies that human capital is positively related to growth and also that the results are robust. The health adjusted education indicator was found to be a highly significant determinant of economic growth, which indicates that both the health and education sectors should be given special attention in order to ensure long run economic growth.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:30654
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Fisayo Fagbemi & Omowumi Grace Adeoye, 2019. "Africa's Human Capital Development: Is Public Finance Management an Effective Strategy?," Journal of Social Economics Research, Conscientia Beam, vol. 6(2), pages 61-73.
    3. Faisal Sultan Qadri & Abdul Waheed, 2020. "The Contribution of Human Capital in Aggregate and Sectoral Production: Evidence from Pakistan," Global Business Review, International Management Institute, vol. 21(2), pages 365-376, April.
    4. Ali Sekkach & Nabil Boubrahimi, 2022. "Oil price volatility and GDP for oil-importing countries: Case of Morocco [Volatilité des prix du pétrole et PIB des pays importateurs : Cas du Maroc]," Post-Print hal-03748687, HAL.
    5. 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.
    6. Basri Bado & Syamsu Alam & Vandy Eka Atmaja & Saparuddin, 2018. "Analysis of Welfare in Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 136-145.
    7. Qadri, Faisal Sultan & Waheed, Abdul, 2014. "Human capital and economic growth: A macroeconomic model for Pakistan," Economic Modelling, Elsevier, vol. 42(C), pages 66-76.
    8. 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.
    9. Apanisile Muyiwa Tolulope & Akinlo Taiwo, 2014. "Growth Effects of Health Inputs and Outcomes in Sub-Sahara African Countries (1995-2011)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(6), pages 705-714, June.
    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. Shafaq Salam & Muhammad Hafeez & Muhammad Tariq Mahmood & Kashif Iqbal & Kashifa Akbar, 2019. "The Dynamic Relation between Technology Adoption, Technology Innovation, Human Capital and Economy: Comparison of Lower-Middle-Income Countries," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 17(1-B), pages 146-161.
    12. repec:ers:journl:v:vi:y:2018:i:3:p:136-145 is not listed on IDEAS
    13. Marinko Škare & Sabina Lacmanovic, 2015. "Human capital and economic growth: a review essay," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(39), pages 735-735, May.

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    More about this item

    Keywords

    Human Capital; Economic Growth; Education and Health;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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