The Impact of Employment and Education on the Economic Growth of Pakistan: A Time-series Analysis
DOI:
https://doi.org/10.55737/qjssh.137617756Keywords:
Education, Economic Growth, Employment, PakistanAbstract
Economic development is a fundamental need for the nation of Pakistan. The independent variables in this research can have a direct influence on economic growth. The present research examines the influence of employment and education on the economic development of Pakistan throughout the period spanning from 1981 to 2022. Regression analysis was done to check the short-run and long-run relationship among GDP growth rate, education, and employment. The study implies an augmented-dickey fuller test to check the stationarity of the variables and error terms. In addition, the tests of Ramsey Reset, multi-collinearity, and heteroscedasticity have also been employed in the study. The results of the study indicate the importance of promoting education and the creation of employment opportunities, which in turn will provide a nation with rapid and sustained economic expansion over an extended period. Education and economic growth were shown to be correlated in the short term, but employment and growth were not. The study proposes boosting educational spending to make it more accessible to the public and raising school and higher education enrolment to boost Pakistan's literacy rate. Education quality and quantity should be prioritized. The government should also create jobs and invest in R&D to boost labor force participation and efficiency.
References
Abbas, Q. (2000). The role of human capital in economic growth: A comparative study of Pakistan and India. The Pakistan Development Review, 39(4II), 451-473. https://doi.org/10.30541/v39i4iipp.451-473
Afridi, A. H. (2016). Human capital and economic growth of Pakistan. Business & Economic Review, 8(1), 77-86. https://doi.org/10.22547/ber/8.1.5
Döpke, J. (2001). The Employment Intensity of Growth In Europe. Kiel Working Paper, 1021, 1-46. https://ideas.repec.org/p/zbw/ifwkwp/1021.html
Gylfason, T. (2003). Education, social equality and economic growth: A view of the landscape. CESifo Economic Studies, 49(4), 557-579. https://doi.org/10.1093/cesifo/49.4.557
Habibi, F., & Amjad, M. (2020). Technology in Society Digitalization, education, and economic growth : A comparative analysis of the Middle East and OECD countries. Technology in Society, 63, 101370. https://doi.org/10.1016/j.techsoc.2020.101370
Hassan, S. A., & Rafaz, N. (2017). The role of female education in economic growth of Pakistan: A time series analysis from 1990-2016. INTERNATIONAL JOURNAL OF INNOVATION AND ECONOMIC DEVELOPMENT, 3(1), 83-93. https://doi.org/10.18775/ijied.1849-7551-7020.2015.35.2007
Heiko, S. (2014). International labour organization (ILO). Max Planck Encyclopedia of Public International Law. https://doi.org/10.1093/law:epil/9780199231690/e490
Herman, E. (2011). The Impact of Economic Growth process on employment in European. The Romanian Economic Journal, 48-67. https://econpapers.repec.org/article/rejjournl/v_3a14_3ay_3a2011_3ai_3a42_3ap_3a47-67.htm
Jaoul, M. (2004). Higher education, causality and growth: A comparison of France and Germany before the Second World War. Compare: A Journal of Comparative and International Education, 34(1), 117-133. https://doi.org/10.1080/0305792032000180505
Kazmi, S. M., Ali, K., & Ali, G. (2017). Impact of Human Capital on Economic Growth: Evidence from Pakistan. Sustainable Development Policy Institute, 1-12. https://ideas.repec.org/p/ess/wpaper/id12233.html
Khan, S. K. (2020). Role of Education in Economic Development of Pakistan Role of Education in Economic Development of Pakistan. May 2019. https://doi.org/10.7176/JESD
Khan, M. S. (2005). Human capital and economic growth in Pakistan (Distinguished lecture). The Pakistan Development Review, 44(4I), 455-478. https://doi.org/10.30541/v44i4ipp.455-478
Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
Mallick, L., Das, P. K., & Pradhan, K. C. (2016). Impact of educational expenditure on economic growth in major Asian countries: Evidence from econometric analysis. Theoretical and Applied Economics, 2(607), 173-186. https://ideas.repec.org/a/agr/journl/vxxiiiy2016i2(607)p173-186.html
Mạnh, P. H., Ngọc, N. V., & Dao, H. T. (2014). Relationship between Economic Growth and Employment in Vietnam. Journal of Economic Development, 222, 40-50.
Mercan, M., & Sezer, S. (2014). The effect of education expenditure on economic growth: The case of Turkey. Procedia - Social and Behavioral Sciences, 109, 925-930. https://doi.org/10.1016/j.sbspro.2013.12.565
Meulemeester, J., & Rochat, D. (1995). A causality analysis of the link between higher education and economic development. Economics of Education Review, 14(4), 351-361. https://doi.org/10.1016/0272-7757(95)00015-c
Pegkas, P., & Tsamadias, C. (2014). Does higher education affect economic growth? The case of Greece. International Economic Journal, 28(3), 425-444. https://doi.org/10.1080/10168737.2014.894551
Raja, N. (2005). Humanization of education in Pakistan through Freire’s concept of literacy. Asia Pacific Education Review, 6(1), 1-6. https://doi.org/10.1007/bf03024962
Rashid, Y. (2014). A Note on Education-Led Economic Growth Hypothesis Pakistan. World Applied Sciences Journal, 32(11), 2291-2296. https://idosi.org/wasj/wasj32(11)14/16.pdf
Sarwar, A., Jadoon, A. K., & Azeem, A. (2017). Education, employment and economic growth nexus: A case study of Pakistan. JISR management and social sciences & economics, 15(1), 15-30. https://doi.org/10.31384/jisrmsse/2017.15.1.2
SODIPE, O. A., & OGUNRINOLA, O. I. (2011). Employment and Economic Growth Nexus in Nigeria. International Journal of Business and Social Science, 11, 232-239. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3499876
Wu, Y. (2011). Innovation and economic growth in China: Evidence at the provincial level. Journal of the Asia Pacific Economy, 16(2), 129-142. https://doi.org/10.1080/13547860.2011.564752
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Saima Wasim, Hasan Raza, Syed Aamir Alam Rizvi, Mumtaz Ali
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
