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Human Capital and Economic Growth: Pakistan, 1960-2003


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  • Abbas, Qaisar
  • Foreman-Peck, James

    (Cardiff Business School)


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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Bibliographic Info

Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number E2007/22.

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Length: 22 pages
Date of creation: Jul 2007
Date of revision: Dec 2007
Publication status: Published in The Lahore Journal of Economics , (2008), Vol. 13, No.1, 1-27.
Handle: RePEc:cdf:wpaper:2007/22

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Keywords: Human Capital; Economic Growth; Cointegration; Pakistan;

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Cited by:
  1. 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, Elsevier, vol. 31(C), pages 383-388.
  2. 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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