Human Capital and Economic Growth Nexus in Pakistan: The Role of Foreign Aid

Authors

  • Hamid Ali Department of Economics & Agri. Economics, PMAS Arid Agriculture University Rawalpindi, Pakistan Author
  • Hafiz Muhammad Abubakar Siddique Federal Urdu University Islamabad, Pakistan Author
  • Kaleem Ullah Federal Urdu University Islamabad, Pakistan Author
  • Muhammad Tariq Mahmood Federal Urdu University Islamabad, Pakistan Author

Keywords:

Human Capital, Economic growth, Foreign Aid, Johansen co-integration test, Pakistan

Abstract

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 aidin enhancing the quality of human capital in Pakistan for1980-2016, 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.

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Published

2018-03-30

Issue

Vol. 7 No. 1 (2018)

Section

Articles

How to Cite

Ali, H. ., Siddique, H. M. A. ., Kaleem Ullah, & Mahmood, M. T. . (2018). Human Capital and Economic Growth Nexus in Pakistan: The Role of Foreign Aid. Bulletin of Business and Economics (BBE), 7(1), 13-21. https://bbejournal.com/BBE/article/view/170