Human Capital-Economic Growth Nexus: A Causality Analysis for Pakistan

Jangraiz Khan, Naeem Ur Rehman Khattak Khattak and Amir Khan

MPRA Paper from University Library of Munich, Germany

Abstract: This paper concentrates on the role of human capital in economic growth of Pakistan during the period 1971-2012.Granger Causality test has been used as analytical technique for this purpose. The study used research and development (R&D), education and health as proxies for human capital. The results confirm the role of human capital in the economic growth of the study area. The results show that human capital in form of research and development (R&D) Granger caused economic growth during the study period. Moreover, unidirectional causal relationships exist among different levels of education, physical capital, R&D and economic growth. Realizing the significance of human capital for sustained economic growth of the country, it is suggested to increase investment in R&D, health and education sector of Pakistan.

Keywords: Causality; Human Capital; Research and Development; Physical Capital; Economic Growth (search for similar items in EconPapers)
JEL-codes: E24 J2 J21 O32 O47 O49 (search for similar items in EconPapers)
Date: 2015-04
New Economics Papers: this item is included in nep-gro, nep-hrm, nep-ino, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in City University Research Journal (CURJ) 2.5(2015): pp. 279-290

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:65689

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