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Is there any causality between human resource development and economic growth? A provincial case study on Pakistan

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  • Muhammad Shahbaz
  • Naveed Aamir
  • Shaista Alam

Abstract

The present study aims to investigate the causality between economic growth and human resource development. In doing so, LLL (Larsson et al., 2001) panel co-integration rank test for heterogeneous panel models and recently developed panel causality tests by Hurlin and Venet (2001) are employed on panel of four provinces. The results of panel rank tests indicate that there exists a long run relationship between human resource development and economic growth in Pakistan. The results based on panel homogeneous causality hypothesis show that economic growth does not cause human resource development, while human resource development causes economic growth. However, panel non-homogeneous hypothesis suggest that there exist bi-directional causality relationship between human resource development and economic growth in Pakistan. The empirical evidence of heterogeneous causality hypothesis confirms the existence of bi-directional casual relationship between human resource development and economic growth in Punjab, while human resource development causes economic activity in Sind.

Suggested Citation

  • Muhammad Shahbaz & Naveed Aamir & Shaista Alam, 2009. "Is there any causality between human resource development and economic growth? A provincial case study on Pakistan," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 1(2), pages 179-200.
  • Handle: RePEc:ids:ijeded:v:1:y:2009:i:2:p:179-200
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    Cited by:

    1. Md. Qamruzzaman, 2023. "Does Environmental Degradation-Led Remittances Flow? Nexus between Environmental Degradation, Uncertainty, Financial Inclusion and Remittances Inflows in India and China," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 9-26, March.
    2. Jalil, Abdul & Idrees, Muhammad, 2013. "Modeling the impact of education on the economic growth: Evidence from aggregated and disaggregated time series data of Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 383-388.

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