Dynamic Relationship between Human Capital and Economic Growth in Sri Lanka: A Co-Integration Analysis

S. Vijesandiran and T. Vinayagathasan

Growth, 2015, vol. 2, issue 2, 20-29

Abstract: Annual data from Sri Lanka was used to analyze dynamic linkage between human capital and economic growth rate. ADF, PP, and Ng-Perron unit root tests confirmed that all the series that has been included in the model are stationary at first difference. Co-integration test identified one co-integrating vector, suggesting long-run relationship between the variables. Both co-integration and VECM test revealed a positive long-run relationship between health index and per capita GDP. We also found the long-run equilibrium of the model for the real per capita GDP, real capital expenditure on human capital and real labor expenditure on human capital. The results of VECM suggested a short-term relationship between per capita GDP and health care, education level and per capita income and health care and education.

Keywords: Human capital; Economic growth; Cob-douglas model; Endogenous growth theory; Co-integration; Error correction model. (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://asianonlinejournals.com/index.php/Growth/article/view/774/802 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoj:growth:v:2:y:2015:i:2:p:20-29:id:774

Access Statistics for this article

More articles in Growth from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Sara Lim ().