IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/51180.html
   My bibliography  Save this paper

The Contribution of Education to Economic Growth: Evidence from Pakistan

Author

Listed:
  • Khattak, Naeem Ur Rehman
  • khan, jangraiz

Abstract

This paper concentrates on the contribution of education to economic growth of Pakistan during 1971-2008.The study uses Ordinary Least Squares (OLS) and Johansen Cointegration test as analytical techniques for this purpose. The results from OLS show that secondary education contributes significantly to the Real GDP Per Capita in Pakistan. The elementary education also positively affects economic growth but the result is statistically insignificant. The cointegration test results confirmed the existence of long run relationship in education and Real GDP Per Capita. It is therefore, suggested to keep education on top priority in public policies, make serious efforts for Universalization of Primary Education and discourage the drop-out rate at all levels of education to achieve sustained economic growth.

Suggested Citation

  • Khattak, Naeem Ur Rehman & khan, jangraiz, 2012. "The Contribution of Education to Economic Growth: Evidence from Pakistan," MPRA Paper 51180, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:51180
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/51180/1/MPRA_paper_51180.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    2. Erich Gundlach, 2001. "Education and Economic Development: An Empirical Perspective," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(1), pages 37-60, June.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    4. Dante B. Canlas, 2003. "Economic Growth in the Philippines : Theory and Evidence," UP School of Economics Discussion Papers 200304, University of the Philippines School of Economics.
    5. Petrakis, P. E. & Stamatakis, D., 2002. "Growth and educational levels: a comparative analysis," Economics of Education Review, Elsevier, vol. 21(5), pages 513-521, October.
    6. Kelly Bedard, 2001. "Human Capital versus Signaling Models: University Access and High School Dropouts," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 749-775, August.
    7. Robert Tamura, 2001. "Teachers, Growth, and Convergence," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1021-1059, October.
    8. Lin, Tin-Chun, 2004. "The role of higher education in economic development: an empirical study of Taiwan case," Journal of Asian Economics, Elsevier, vol. 15(2), pages 355-371, April.
    9. Asteriou, D. & Agiomirgianakis, G. M., 2001. "Human capital and economic growth: Time series evidence from Greece," Journal of Policy Modeling, Elsevier, vol. 23(5), pages 481-489, July.
    10. Tallman, Ellis W. & Wang, Ping, 1994. "Human capital and endogenous growth evidence from Taiwan," Journal of Monetary Economics, Elsevier, vol. 34(1), pages 101-124, August.
    11. Stevens, Margaret, 1999. "Human Capital Theory and UK Vocational Training Policy," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 15(1), pages 16-32, Spring.
    12. Canlas, Dante B., 2003. "Economic growth in the Philippines: theory and evidence," Journal of Asian Economics, Elsevier, vol. 14(5), pages 759-769, October.
    13. 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.
    14. Qaisar Abbas, 2001. "Endogenous Growth and Human Capital: A Comparative Study of Pakistan and Sri Lanka," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(4), pages 987-1007.
    15. Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sadaf MAJEED* & Syed Faizan IFTIKHAR** & Zeeshan ATIQ***, 2019. "CREDIT ACTIVITY AND GROWTH PERFORMANCE: Evidence from Panel Data," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 29(1), pages 107-129.
    2. Khan, Jangraiz & Khattak, Naeem Ur Rehman Khattak & Khan, Amir, 2015. "Human Capital-Economic Growth Nexus: A Causality Analysis for Pakistan," MPRA Paper 65689, University Library of Munich, Germany.
    3. Sandra TEODORESCU, 2017. "Formal Education in the European Union and Its Impact on the Macroeconomic Development," Romanian Statistical Review, Romanian Statistical Review, vol. 65(1), pages 73-90, March.
    4. Khan, Jangraiz & Rehman Khattak, Naeem Ur, 2014. "The Significance of Research and Development for Economic Growth: The Case of Pakistan," MPRA Paper 56005, University Library of Munich, Germany.
    5. Jangraiz KHAN & Zilakat Khan MALIK, 2015. "Education-Economic Growth Nexus: A Review," Journal of Economic and Social Thought, KSP Journals, vol. 2(2), pages 121-126, June.
    6. Cristina Ciumas & Claudia-Andreea Urean & Gabriela Mihaela Muresan & Gabriel Armean, 2017. "Education And Employment Rate In Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 81-86, July.
    7. Stefan Cristian Ciucu & Raluca Dragoescu, 2014. "The Influence of Education on Economic Growth," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 2(1), pages 243-257, May.
    8. Sami Ullah & Dr. Muhmmad Tahir, 2020. "Linkages between Trade Openness and Economic Growth: Evidence from SAARC Member Countries," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 10(4), pages 81-94.
    9. Gangadhar Dahal, 2016. "Education policy and its contribution to socioeconomic development of Nepal with reference to some selected Asian Countries," Proceedings of Teaching and Education Conferences 3906633, International Institute of Social and Economic Sciences.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jangraiz KHAN & Zilakat Khan MALIK, 2015. "Education-Economic Growth Nexus: A Review," Journal of Economic and Social Thought, KSP Journals, vol. 2(2), pages 121-126, June.
    2. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    3. Adejumo, Oluwabunmi O. & Asongu, Simplice A. & Adejumo, Akintoye V., 2021. "Education enrolment rate vs employment rate: Implications for sustainable human capital development in Nigeria," International Journal of Educational Development, Elsevier, vol. 83(C).
    4. Panagiotis PEGKAS & Constantinos TSAMADIAS, 2015. "Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 9-32, June.
    5. Ganegodage, K. Renuka & Rambaldi, Alicia N., 2011. "The impact of education investment on Sri Lankan economic growth," Economics of Education Review, Elsevier, vol. 30(6), pages 1491-1502.
    6. Kostakis, Ioannis & Lolos, Sarantis & Doulgeraki, Charikleia, 2020. "Cultural Heritage led Growth: Regional evidence from Greece (1998-2016)," MPRA Paper 98443, University Library of Munich, Germany.
    7. Tan, Clifford, 2013. "The contribution of university rankings to country's GDP per capita," MPRA Paper 53900, University Library of Munich, Germany.
    8. Kashif Munir & Shahzad Arshad, 2018. "Factor accumulation and economic growth in Pakistan: incorporating human capital," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 45(3), pages 480-491, March.
    9. Narayan, Seema & Narayan, Paresh Kumar & Mishra, Sagarika, 2010. "Investigating the relationship between health and economic growth: Empirical evidence from a panel of 5 Asian countries," Journal of Asian Economics, Elsevier, vol. 21(4), pages 404-411, August.
    10. Asongu, Simplice A. & Odhiambo, Nicholas M., 2020. "Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 44(1).
    11. Lodhi, Abdul Salam & Tsegai, Daniel W. & Gerber, Nicolas, 2011. "Determinants of participation in child’s education and alternative activities in Pakistan," Discussion Papers 119110, University of Bonn, Center for Development Research (ZEF).
    12. Risti Permani, 2009. "The Role of Education in Economic Growth in East Asia: a survey," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 23(1), pages 1-20, May.
    13. João Ferreira Brito & Pedro Cosme Costa Vieira, 2013. "Economic Growth as the Result of Firms’ Aggregate Performance: Evidence from the OECD Countries," Economics and Management Research Projects: An International Journal, Open Access International Journals, vol. 3(1), pages 24-31, December.
    14. Saarivirta, Toni & Consoli, Davide, 2007. "Where Did They Go? A Study on Newly Established Universities and Graduate Mobility in Finland," MPRA Paper 11377, University Library of Munich, Germany.
    15. Gazi Mainul Hassan & Arusha Cooray, 2013. "Effects of Male and Female Education on Economic Growth: Some Evidence from Asia Using the Extreme Bounds Analysis," Working Papers in Economics 13/10, University of Waikato.
    16. Md. Qamruzzaman & Wei Jianguo & Sharmin Jahan & Zhu Yingjun, 2021. "Financial innovation, human capital development, and economic growth of selected South Asian countries: An application of ARDL approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4032-4053, July.
    17. Hassan, Gazi & Cooray, Arusha, 2015. "Effects of male and female education on economic growth: Some evidence from Asia," Journal of Asian Economics, Elsevier, vol. 36(C), pages 97-109.
    18. Tan Kuan Lu, Clifford, 2014. "University Rankings Game and its relation to GDP per capita and GDP growth," MPRA Paper 53933, University Library of Munich, Germany.
    19. Bahar Bayraktar-Sağlam, 2016. "The Stages of Human Capital and Economic Growth: Does the Direction of Causality Matter for the Rich and the Poor?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 243-302, May.
    20. 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.

    More about this item

    Keywords

    Education; Economic Growth; Elementary Education; Secondary Education; Contribution; Ordinary Least Squares;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:51180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.