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The Role of Human Capital in Economic Growth: A Comparative Study of Pakistan and India


  • Qaisar Abbas

    (Planning and Development Department, Government of Punjab, Lahore.)


Economic Growth has posed an intellectual challenge ever since the beginning of systematic economic analysis. Adam Smith claimed that growth was related to division of labour, but he did not link them in a clear way. After that Thomas Malthus developed a formal model of a dynamic economic growth process in which each country converge toward stationary per capita income. According to this model, death rates fall and fertility rises when income exceed the equilibrium, and opposite occur when incomes are less than that level. Despite the influence of the Malthusian model in nineteenth century economists, fertility feel rather than rose as income grew during the past 150 years in the west and other parts of the world. The Neoclassical growth model of Solow (1956), which has been for the past thirty years the central framework to account for economic growth, focuses on exogenous technical population factors that determine output-input ratios, responded to the failure of Malthusian model. Neither Malthus’s nor the Neoclassicists approach to growth pays much attention to Human Capital. Yet the evidence is quite strong of close link between investments in human capital and economic growth. Since human capital embodied knowledge and skills, and economic development depends on advances in technological and scientific knowledge, development presumably depends on the accumulation of human capital. Investment in human capital has been a major source of economic growth in advanced countries.

Suggested Citation

  • 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.
  • Handle: RePEc:pid:journl:v:39:y:2000:i:4:p:451-473

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    Cited by:

    1. 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.
    2. Hameed, Abdul & Padda, Ihtsham ul Haq & Dahar, Muhammad Arshad, 2017. "Micro-Supply Capacity Assessment and Quality of Education for the Public Sector Schools in Punjab (Pakistan)," MPRA Paper 85020, University Library of Munich, Germany.
    3. Sultan, Faisal & Tehseen, Syed & Arif, Imtiaz, 2009. "Human Capital and Economic Growth: The Quest for the Most Relevant Level of Education in Pakistan," MPRA Paper 59181, University Library of Munich, Germany.
    4. Rana Ejaz Ali Khan & Karamat Ali, 2005. "Who Are Schooled in Urban Pakistan?," HEW 0505003, University Library of Munich, Germany.
    5. Basem Elmukhtar Ertimi & Abulkasem Dowa & Elham Mohamed Albisht & Basim Aboubaker Oqab, 2016. "The Impact of Corruption on Economic Growth in OIC Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 91-103, September.
    6. Jie Liu & Chao Bi, 2019. "Effects of Higher Education Levels on Total Factor Productivity Growth," Sustainability, MDPI, Open Access Journal, vol. 11(6), pages 1-12, March.
    7. Munir, Sidra & Rao, Zia-ur-Rehman & Sana, S, 2019. "Financial Development, Fiscal Policy and Economic Growth: The Role of Institutional Quality in Pakistan," Journal of Finance and Accounting Research, University of Management and Technology, Lahore, vol. 1(2), pages 27-47, August.
    8. Amjad Amin & Muhammad Rafiq, 2010. "Analyzing The Determinants Of Household Human Capital Investment Behavior In The Rural Areas Of Pakistan : A Case Study Of District Swabi)," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 2(1), pages 1-6, April.
    9. Toseef Azid & Rana Ejaz Ali Khan, 2010. "Who are the children going to school in Urban Punjab (Pakistan)?," International Journal of Social Economics, Emerald Group Publishing, vol. 37(6), pages 442-465, May.
    10. Mohsin S. Khan, 2005. "Human Capital and Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 44(4), pages 455-478.
    11. Arshad, Shahzad & Munir, Kashif, 2015. "Factor Accumulation and Economic Growth in Pakistan: Incorporating Human Capital," MPRA Paper 67012, University Library of Munich, Germany.
    12. T. Vinayagathasan & S. Vijesandiran, 2015. "Dynamic Relationship between Human Capital and Economic Growth in Sri Lanka: A Co-Integration Analysis," Growth, Asian Online Journal Publishing Group, vol. 2(2), pages 20-29.
    13. Ahsan, Henna & Idrees, Dr Muhammad, 2014. "Impact of Health on Earnings: Individual and District Level Analysis for Pakistan," MPRA Paper 56769, University Library of Munich, Germany, revised 20 Jun 2014.
    14. Emmanuel Anoruo & Uchenna Elike, 2015. "Human Capital-Economic Growth Nexus in Africa: Heterogeneous Panel Causality Approach," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 1017-1023.
    15. Ibrahim, Taofik, 2016. "Human Capital-Growth nexus: the role of Government Spending on Education and Health in Nigeria," MPRA Paper 73712, University Library of Munich, Germany.
    16. Syed Kazmi & Kazim Ali & Ghamze Ali, 2017. "Impact of Human capital on Economic Growth: Evidence from Pakistan," Working Papers id:12233, eSocialSciences.
    17. 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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