Human Capital and Economic Growth Nexus in Pakistan: The Role of Foreign Aid
Hamid Ali, Hafiz Muhammad Abubakar Siddique, Kaleem Ullah, Muhammad Tariq Mahmood
Ali, H. Siddique, H. M. A. Ullah, K. and Mahmood, M. T. (2018). Human Capital and Economic Growth Nexus in Pakistan: The Role of Foreign Aid. Bulletin of Business and Economics, 7(1), 13-21.
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.
Human Capital, Economic growth, Foreign Aid, Johansen co-integration test, Pakistan
E24, O4, F35
Research Foundation for Humanity (RFH)
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