Impact of Human Capital on Economic Growth- A Growth Accounting Equation for Pakistan

Authors

  • Asfandyar
  • Dr. Zilakat Khan
  • Khairullah Jan
  • Laila Zaib

DOI:

https://doi.org/10.48112/jemss.v1i1.228

Abstract

Abstract Views: 189

The interest of researchers in exploring the various dimensions of human capital and observing its considerable impact on economic growth  has  caused  the  human  capital  theory  to  become  a fascinating field of research for economists. The study focused on the impact of the human capital along with estimating a growth accounting equation for Pakistan. To fulfill the objectives  of the study, two models have been estimated utilizing time series data from year 2001 to 2014. The first model transforms the standard Cobb-Douglas production function to its linear form using trans-log  function.  The  2nd  model  used  three  proxies  of  education enrolment  at  various  levels  along  with  two  health  proxies  for human capital. The result drawn from model first concluded that Pakistan economy undergone through decreasing returns to scale during period under consideration. The 2nd model showed that the output  per  person  is  positively  related  to  middle  &  higher secondary  education  enrolments  while  the  enrolment  at  higher secondary  education  level  &  life  expectancy  showed  a  non-significant relationship contrary to infant mortality rate & primary education   enrolment   that   showed   negative   and   significant relationship.  The  study  recommended  policy  implications  that amongst  the  chosen  enrolments  at  three  levels,  the  education department  may  focus  on  enhancing  enrolment  at  middle  level while  the  health  department  may  focus  on  reduction  in  infant mortality rate for enhancing per capita output in the country. The study has emphasized, for the first time, the need for inclusion of human capital as a separate factor of production like traditional labour and capital in national accounts statistics of Pakistan.

Keywords:

Economic Development, Human Capital, Growth Accounting Equation, Education enrollment, infant mortality rate, Health department

Metrics

Metrics Loading ...

Published

2022-03-28

How to Cite

Asfandyar, Khan, . D. Z., Khairullah Jan, & Zaib, L. (2022). Impact of Human Capital on Economic Growth- A Growth Accounting Equation for Pakistan. Journal of Educational Management and Social Sciences, 1(1), 14–30. https://doi.org/10.48112/jemss.v1i1.228

Issue

Section

Articles