Human Capital Convergence: Evidence from the Punjab

Abstract

While the literature on economic growth provides mixed evidence on convergence across different countries and regions, a large number of studies point toward the widening income gap between rich and poor. In the development literature, a broader range of national welfare indicators beyond income per capita—health and education in particular—are considered important instruments for measuring progress in human development. This article examines education and other selective welfare indicators to determine if there has been unconditional and conditional convergence across the districts of Pakistani Punjab over the period 1961–2008. The study can be considered part of the growing literature that looks at growth theory in developing countries in the context of human capital. Thus far, few studies have examined human capital in the context of convergence, and Pakistan has not been studied in any depth up to now. The results of our empirical analysis show that over the last five decades, both unconditional and conditional convergence has taken place in literacy rates across Punjab, and that this has been accompanied by increased gender parity in educational enrolment levels and improved housing conditions.

Empirical Analysis of Human Capital Convergence in Indonesia

“…The speed and achievement of this gap decrease can occur if the main factors determining this convergence condition can be improved especially by policymakers such as the government. The results of this study analysis are in line with cross-country research conducted by (Sab and Smith, 2002) and (Afzal, 2012) in Bangladesh in the case of conditional convergence.…”

“…Further can be analyzed that the study of human capital convergence that occurs for between countries in the initial period awal (Sab and Smith, 2002), as well as several studies in developing countries such as (Afzal, 2012) in Pakistan, (Liaskos and Papadas, 2009) in Greece, and (Syukriyah, 2016) in Indonesia shows that regional convergence of human capital is evident. Different things are shown in studies in developed countries (Christopher R. Berry and Glaeser, 2005) in the USA and (Kim, 2016) in South Korea which provides empirical evidence of the condition of inter-city divergence.…”

“…This study develops the basic model of (Sab and Smith, 2002) and (Afzal, 2012) that apply absolute and conditional convergence models for human capital. This model developed in the context of data panels for regions in Indonesia.…”

“…One of the developments of the convergence model is the concept of convergence model application for human capital. The earliest studies that have undertaken research by adopting the concept of convergence applied to other conditions such as convergence of human capital (Sab and Smith, 2002) to intercountry, (Afzal, 2012) apply regional models in Pakistan, and (Liaskos and Papadas, 2009) in Greece. Some of these preliminary studies provide empirical evidence of the convergence of human capital.…”

Convergence and Disparities in Higher Education Fiscal Expenditures in China: A Regional Perspective

“…Given the significant differences in geographical distribution and socioeconomic development between the eastern, western, and northeastern regions of China, this study examines whether the per capita general public budgetary funds for higher education in these regions exhibit similar convergence patterns to those observed at the national level using equation (1). The results show that both the eastern and central regions exhibit significant β convergence in continuous time periods and most segmented time periods.…”