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Human Capital and Economic Growth: Time Series Evidence from Pakistan

Author:
Faisal Sultan Qadri   Abdul Waheed  


Issue Date:
2011


Abstract(summary):

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 economic growth in Pakistan. 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.


Page:
17


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