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Human capital and economic growth: A macroeconomic model for Pakistan

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  • Qadri, Faisal Sultan
  • Waheed, Abdul

Abstract

The paper presents a small macro model for Pakistan economy focusing the impact of investment in human capital on the key macroeconomic variables. The demand side is modeled along the Keynesian lines while the supply side is modeled as per neoclassical theory of production. This framework allows analyzing the effects of investment in human capital on supply side variables (like labor, physical and human capital) and demand side variables (like consumption and investment) at the same time.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:ecmode:v:42:y:2014:i:c:p:66-76
    DOI: 10.1016/j.econmod.2014.05.021
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    References listed on IDEAS

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    Cited by:

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    2. Kashif Munir & Shahzad Arshad, 2018. "Factor accumulation and economic growth in Pakistan: incorporating human capital," International Journal of Social Economics, Emerald Group Publishing, vol. 45(3), pages 480-491, March.
    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. Mishra, Vinod & Smyth, Russell, 2015. "Estimating returns to schooling in urban China using conventional and heteroskedasticity-based instruments," Economic Modelling, Elsevier, vol. 47(C), pages 166-173.
    5. Urgaia, Worku R., 2018. "The Role of Human Capital Resources in East African Economies," GLO Discussion Paper Series 218, Global Labor Organization (GLO).
    6. Mahalik, Mantu Kumar & Mallick, Hrushikesh & Padhan, Hemachandra, 2021. "Do educational levels influence the environmental quality? The role of renewable and non-renewable energy demand in selected BRICS countries with a new policy perspective," Renewable Energy, Elsevier, vol. 164(C), pages 419-432.
    7. Mustafa, Ghulam & Rizov, Marian & Kernohan, David, 2017. "Growth, human development, and trade: The Asian experience," Economic Modelling, Elsevier, vol. 61(C), pages 93-101.
    8. Iader Giraldo & Ricardo Arguello & Nataly Herrera, 2019. "Commodity Booms, Human Capital, and Economic Growth: An Application to Colombia," Working Papers MPIA 2019-12, PEP-MPIA.
    9. Roseline Tapuwa Karambakuwa & Ronney Ncwadi & Andrew Phiri, 2020. "The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?," International Journal of Social Economics, Emerald Group Publishing, vol. 47(9), pages 1143-1159, July.
    10. Atif Awad, 0. "Which Contributes More to Economic Growth in the MENA Region: Health or Education? An Empirical Investigation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 0, pages 1-15.
    11. Liping Liao & Minzhe Du & Bing Wang & Yanni Yu, 2019. "The Impact of Educational Investment on Sustainable Economic Growth in Guangdong, China: A Cointegration and Causality Analysis," Sustainability, MDPI, Open Access Journal, vol. 11(3), pages 1-16, February.
    12. Karunanithi Kriskkumar & Niaz Ahmad Mohd Naseem, 2019. "Analysis of Oil Price Effect on Economic Growth of ASEAN Net Oil Exporters," Energies, MDPI, Open Access Journal, vol. 12(17), pages 1-19, August.

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    More about this item

    Keywords

    Human capital; Economic growth; Education; Model construction and estimation;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • I20 - Health, Education, and Welfare - - Education - - - General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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