Investment in Human Capital and Economic Growth in Pakistan: A Time Series Analysis for CPEC Project
Downloads
The issue that is Pakistan labor market will be fulfill the demand for technical human skillof increasing investment activities in the country under CPEC project which is the main part of china “one belt one road” initiative project. Therefore this study conducted on the bases of time series analysis, aim to investigate empirically the impact of Human capital on economic growth of Pakistan from 1985 to 2016. This study used Labor force of Pakistan as a target independent variable While GDP are used as proxy variable for Economic growth of Pakistan. ADF unit root test, Johansen co-integration, and granger causality techniques were used for long run nexus between the variables while Error Correction Model (ECM) has been used to investigate short run nexus between the dependent and independent variables. The result of various techniques shows that Human capital has statistically significant impact on GDP. The investment in CPEC will required more skillful, technical and non-technical labor force therefore to conclude that human capital recently are more important for economic growth of Pakistan. The empirical result on other side shows that all the define variables in our model accelerate economic growth but labor force for economic growth of Pakistan in short run is more important contributing growth.
Abraham, A. Y. (2017). Female Labour Force Participation evidence from Ghana. International Journal of Social Economics, 44(11), 1489-1505.
Bloom, D. E. (2009). Fertility, Female labour force particiation, and the demographic dividend. Journal of Economic Growth, 14(2), 79-101.
Choi, W. R. (2000). International Labour Markets and the migration of labour forces as an alterntative solution for labour shortages in the hospitality industry. International Journal of Contemporary Hospitality Management, 12 (1), 61-67.
Clark, R., Ogawa, N., kondo, M., & Matsukura, R. (2010). Population Decline, Labor Force Stability, and the Future of the Japanese Economy. European Journal of Population / Revue européenne de Démographie, 26(2), 2017-227.
Hanushek, E. A. (2000). Schooling, labour-force quality, and the growth of nations. American Economic Review, 1184-1208.
Heintz, J. &. (2003). Informalization, economic growth and the challenge of creating viable labour standard in developing countries.
Jeong, H., Kim, Y., & Manovskii, l. (2015). The Price of Experience. The American Economic Review, 105(2), 784-815.
L, c. O. (2010). Clark, R. L., Ogawa, N., Kondo, M.Population decline, labor force stability, and the future of the Japanese economy. Clark, R. L., Ogawa, N., Kondo, M., & Matsukura, R. (2010). Population decline, labor force stability, and the future of the Japanese economy. European Journal of Population/Revue européenne de Démographie, 207-227.
L., A. B. (2002). The Macro-economics of Labour Market Outcomes in MENA over the 1990s.
Lahoti, R. &. (2013). Economic growth and female labour forece participation in India .
Le Van, C. N. (2010). New Technology human capital, and growth in a developing country. Mathematical Popluation Studies, 17(4), 215-241.
Louser, L. (2008). The political impact of labour mirgration in Bahrain. City & Society , 20(1), 32-53.
Maitra , B. (2016). Investment in human capital and economic growth in Singapore. Global Business Review, 17(2), 425-437.
Rawski, T. G. (2003). Recent Development in China's Labour Economyy.
Siath, A. (1989). Macro-economic issues in internationa labour migration . a review ISS Working Paper Series/General Series, 48, 1-54.
Siddiqui, A. &. (Applied Economics). The Human Capital and economic growth nexus. In East and South Asia , 49(28), 2697-2710.
Topel, R. (1999). Labour Markets anf Economic Growth. Handbook of Labour Economica, 3, 1943-2984.
