Abstract

This paper explores the relationship between human development and economic growth in Pakistan by employing the time series data ranging from 1972 to 2014. The main purpose of the research is to examine the structure of human development and its implications on economic growth in Pakistan. Human development is a crucial to social, political and economic development of a country. Human development accompanies healthier and educated people who contribute to the economic growth through their increased capabilities, skills, civil liberties, longevity, opportunities and output. Human development upsurge human proficiencies, productivity and ultimately upturn in economic growth and wellbeing. Here, the variables like life expectancy, total literacy rate and democracy are used as proxies of human development whereas econometrical methods like Unit Root Tests, Autoregressive Distributed Lag (ARDL) Cointegration Technique and Error Correction Model (ECM) are used. The findings of this paper illustrate a significant empirical relevance of human development and economic growth. Pakistan is facing the great challenge of accelerating economic growth and it requires the sustained efforts to focus and promote human development. The education and health should be given utmost eminence to reach the virtuous cycle of economic growth through the legitimate option of democracy. The prime choice is that human development should be given sequencing priority and institutional framework should be evolved to attain the ultimate goal of sustainable development.

Keywords: human development, economic growth, democracy, ADF, Autoregressive Distributed Lag (ARDL) and error correction model.

JEL Classification: F63, I15, I25, O15.

Cite as: Iqbal, K. (2018). Human Development and Economic Growth in Pakistan. SocioEconomic Challenges, 3(2), 66-75. DOI: 10.21272/sec.3(2).66-75.2018

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