, PhD Scholar, National University of Science and Technology, Islamabad, Pakistan
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
- Abbas, Q. (2001). Endogenous Growth and Human Capital: A Comparative Study of Pakistan and Sri Lanka. The Pakistan Development Review, 40(4), 987-1007.
- Acemoglu, D., & Autor, D. (2011). Lectures in labor economics. Manuscript. Available at: http://economics.mit. edu/files/4689.
- Becker, Gary S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago press.
- Birdsall, N., & Londono, J. (1997). Asset Inequality Does Matter: Lessons from Latin America. Research Department Publications 4066, Inter-American development Bank, Research Department.
- Bloom, D. E., D. Canning, and J. Sevilla (2004). The Effect of Health on Economic Growth: A Production Function Approach. World Development, 1–13.
- Dasgupta, P., & Weale, M. (1992). On measuring the quality of life. World Development, 20(1), 119-131.
- Dauda Risikat O. S. (2010). Role of Human Capital in Economic Development: An Empirical Study of Nigerian Case.
- Engle, R. F. and Granger, C. W. J. (1987). Co-integration and error correction: Representation, estimation and testing. Econometrica, 55, 251-276.
- Filmer, D., Hammer, J. S., & Pritchett, L. H. (2002). Weak links in the chain II: a prescription for health policy in poor countries. The World Bank Research Observer, 17(1), 47-66.
- Globalisation and sustainability: environmental Kuznets curve and the WTO. Ecological Economics, 39, 185–196.
- Harbinson, F. H. (1962). Human resources development planning in modernizing economies. International Labor Review, 453-458.
- Harbinson, F. H. and Meyers, A. C. (1964). Education, Manpower, and Economic Growth: Strategy of Human Resource Development. McGraw Hill Book Company, USA.
- Harris, R. I. D., & Sollis, R. (2003). Applied time series modelling and forecasting. Chichester, West Sussex: Wiley.
- Johnson, A. O. (2011). Human Capital Development and Economic Growth in Nigeria. European Journal of Business and Management, 3(9).
- Knowles, S. and Owen, P. D. (1995). Health capital and cross-country variation in income per capita in the Mankiw-Romer-Weil model. Economics Letters, 48, 99-106.
- Lucas, R., E. Jr. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics 22, 3-4.
- Mincer, J. (1958). Investment in human capital and personal income distribution. The journal of political economy, 281-302.
- Pesaran, M.H. (1997), The Role of economic Theory in Economic Modelling the Long Run. The Economic Journal, 107, 178-191.
- Pesaran, M., & Shin,Y. (1999). An Autoregressive Lag Modeling Approach to Cointegration Analysis. In S. Strom (ed.) Econometrics and Economic Theory in 20th Century: The Ragnar Frisch centennial Symposium, Cambridge University Press, Cambridge.
- Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16, 289-326.
- Ramirez, A., Ranis G., and Stewart, F. (1997). Economic Growth and Human Development. Center Discussion Paper No. 787.
- Sharif, T., Ahmed, J., Abdullah, J,. (2013). Human Resource Development and Economic Growth in Bangladesh: An Econometric Analysis. European Journal of Business and Management, 5(7).
- Sajid Ali, Imran Sharif Chaudry & Fatima Farooq (2012). Human capital formation and economic growth in Pakistan. Pakistan Journal of Social Sciences, 32(1), 229-240.
- Schultz, T. P. (1992). The role of education and human capital in economic development: An empirical assessment. E. G. Center, & C. New Haven (Eds.). Economic Growth Center, Yale University.
- Schultz, T. W. (1961). Investment in Human Capital. American Economic Review, pp. 1-17.
- Singh, K. (1999). Rural Development: Principles, Policies and Management. 2nd edition, Sangha Publications, India Ltd, New Delhi.
- Shittu, O. I., Yemitan, R. A., Yahya, O. S. (2012). On Autoregressive Distributed Lag, Cointegration and Error Correction Model [An Application to Some Nigeria Macroeconomic Variables]. Australian Journal of Business and Management Research, 2(8), 56-62.
- Suri, T., Boozer, M. A., Ranis, G., Stewart, F. (2011). Paths to success: the relationship between human development and economic growth. World Development, 39, 506–522.
- Sjö, Bo (2012). Testing for Unitroots and Cointegration. Available at: http://www.iei.liu.se/nek/ekonometrisk-teori-7-5-hp-730a07/labbar/1.233753/dfdistab7b.pdf (Erişim Tarihi: 26 Aralık 2012).
- Meier, G.M. (1970). Leading Issues in Economic Development. 2nd Ed. Oxford: Oxford University Press
- Wieland, S., Lan, N. C., Mirasedeghi, S., & Gee, K. W. (1991). Anxiolytic activity of the progesterone metabolite 5α-pregnan-3α-ol-20-one. Brain Research, 565(2), 263-268.
- World Bank Group (2015). World Development Report 2015: Mind, Society and Behavior. Washington, DC: World Bank.