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Human Capital and Economic Growth in Pakistan

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  • Mohsin S. Khan

    (International Monetary Fund, Washington, D. C.)

Abstract

Pakistan’s economy has grown faster on average than many other low- and middleincome countries over the past two decades. But several countries in Southeast Asia have fared even better. This paper focuses on factors that explain Pakistan’s relative growth performance. In addition to more traditional factors believed to determine growth, this paper looks particularly at the role of differences in the quality of human capital. The cross-country empirical results suggest that accumulation of physical capital and improvements in the quality of institutions have the largest pay-offs in terms of achieving higher growth, but that better education and health care also have a significant impact. Investment in these areas will increase the possibility of Pakistan entering a virtuous cycle of high growth and improved living conditions for the population.

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File URL: http://www.pide.org.pk/pdf/PDR/2005/Volume4/455-478.pdf
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Bibliographic Info

Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 44 (2005)
Issue (Month): 4 ()
Pages: 455-478

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Handle: RePEc:pid:journl:v:44:y:2005:i:4:p:455-478

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  1. Barry P. Bosworth & Susan M. Collins, 2003. "The Empirics of Growth: An Update," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 34(2), pages 113-206.
  2. Dani Rodrik, 2003. "Growth Strategies," NBER Working Papers 10050, National Bureau of Economic Research, Inc.
  3. Daniel Cohen & Marcelo Soto, 2007. "Growth and human capital: good data, good results," Journal of Economic Growth, Springer, vol. 12(1), pages 51-76, March.
  4. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May.
  5. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
  6. Qaisar Abbas, 2000. "The Role of Human Capital in Economic Growth: A Comparative Study of Pakistan and India," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 451-473.
  7. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
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Cited by:
  1. Aziz, Babar & Khan, Tasneem & Aziz, Shumaila, 2008. "Impact of Higher Education on Economic Growth of Pakistan," MPRA Paper 22912, University Library of Munich, Germany, revised 2008.
  2. Matthew McCartney, 2012. "Competitiveness and Pakistan: A Dangerous, Distorting, and Dead-End Obsession?," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 213-241, September.

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