An empirical investigation of the relationship between education and growth in Pakistan

Abstract

In this paper we try to examine the impact of education on growth in Pakistan for the time period of 1973-2001. Education, measured as gross enrollments and total expenditures, is broken down into primary, secondary and tertiary as well as by gender in each of the above categories. Time series techniques are used to determine whether education, for each category, has a causal impact on growth. The robustness of these results is then examined using the Levine-Renelt (1992) methodology. We find that secondary and higher education has a strong and robust impact on growth, whereas, at the primary level only initial female enrolments show a causal but not robust impact on growth.human capital, economic development,

Education and economic growth in Pakistan: A cointegration and causality analysis

“…They found that human capital explained as much as 39% of the increase in GDP per person in 1990. From this, one can easily conclude that human capital positively contributed to economic growth in Pakistan (Chaudhary, Iqbal, & Gillani, 2009;Stengos & Aurangzeb, 2008). Thus human capital through education plays a major role in economic growth of a country.…”

“…Easterly (2001) said that Pakistan is a country that made little social progress for given rates of GDP. Among all levels of education, General higher education causes economic growth highly and most significantly as was explored by Stengos and Aurangzeb (2008). The level of confidence of causing economic growth to school education found to be highest.…”

Is there any causality between human resource development and economic growth? A provincial case study on Pakistan

“…For instance in case studies, Pradhan (2009) seems to confirm the unidirectional causality running from economic growth to education and there is absence of reverse causality. Similarly, Stengos and Aurangzeb (2008) come to conclusion that secondary and higher education has significant and vigorous impact on economic growth 1 . There is also existence of causal association between female enrolments and economic growth but not robust.…”

A system dynamics study of Pakistan's education system: Consequences for governance

“…Under these regimes, the public sector education deteriorated significantly (Burki, ). According to the United Nations Development Program, Pakistan is among only 12 countries in the world that spend less than 2.5% of the GDP on education (Stengos & Aurangzeb, ). Specifically, Pakistan's education budget is a paltry 1.7% of the GDP.…”

“…A decline in the motivation to study has resulted in an uneducated workforce made up of millions of frustrated youth who are unable to contribute to the economy (Ahmad et al, ). These youth have become candidates for recruitment by groups and organizations who are alienated from global economic, political, and social systems (Stengos & Aurangzeb, ). In a Muslim country like Pakistan, this has invariably meant that the groups who espouse various radical Islamic causes are able to attract these youth (Winthrop & Graff, ).…”