Human Capital and Economic Growth Nexus in Pakistan: The Role of Foreign Aid

Hamid Ali, Hafiz Muhammad Abubakar Siddique, Kaleem Ullah and Muhammad Mahmood
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Hamid Ali: Department of Economics & Agri. Economics, PMAS Arid Agriculture University Rawalpindi, Pakistan
Hafiz Muhammad Abubakar Siddique: Federal Urdu University Islamabad, Pakistan
Kaleem Ullah: Federal Urdu University Islamabad, Pakistan

Bulletin of Business and Economics (BBE), 2018, vol. 7, issue 1, 13-21

Abstract: Human capital is one of the major factor that increase the level of output and accelerate the economic growth. The efficient human capital stock is mandatory for economic and human development. This paper examined the role of foreign aid in enhancing the quality of human capital in Pakistan for 1980-2016, using Johansen co-integration and granger causality approaches. The findings of Johansen co-integration express the long run nexus between human capital, foreign aid, economic growth, and human development index. The empirical results exposed one-way causality from human capital and economic growth to foreign aid, and the existence of two-way causal relationship among human capital and HDI.

Keywords: Human Capital; Economic growth; Foreign Aid; Johansen co-integration test; Pakistan (search for similar items in EconPapers)
JEL-codes: E24 F35 O4 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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