Claudius Ptolemy was the astronomer who wrote a book called the “Almagest”; the book that defined astronomy for almost a thousand years. He made the first geocentric model and catalogued over a thousand stars. Ptolemy was born in 100 AD…
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In solution containing an accurately known concentration
In analytical chemistry, a standard solution is a solution containing an accurately known concentration of an element or a substance, A known weight of solute is dissolved to make a specific volume. It is prepared using a standard substance, such…
National phobia is developed when their fear become
National Institute of Mental Health had stated that there were roughly 10% of people suffered from specific phobia, 7.1% from social phobia and 0.9% from agoraphobia in U.S. This type of an anxiety disorders, phobia, if left untreated will become…
When When did plate tectonics begin? Geology
When did plate Tectonics Begin?ABSTRACTThe Isua complex was calculated to be in operation 0.7-0.8 G. yr. after the formation of the Earth. (Komiya, T., Maruyama, S., Masuda, T., Nohda, S., Hayashi, M. and Okamoto, K., 1999. Plate tectonics at 3.8–3.7…
ALLAMATIQBALTOPENTUNIVERSITY Pesaran,TM.TH.,T&TShin,TY.TAnTautoregressiveTdistributed-lagTmodellingTapproachTtoTcointegrationTanalysis.TEconometricTSocietyTMonographs,T31,T371-413(1998). Pesaran,TM.TH.,TShin,TY.,T&TSmith,TR.TJ.T(2001).TBoundsTtestingTapproachesTtoTtheTanalysisTofTlevelTrelationships.TJournalTofTappliedTeconometrics,T16(3),T289-326. Popkin,TB.TM.,TAdair,TL.TS.,T&TNg,TS.TW.GlobalTnutritionTtransitionTandTtheTpandemicTofTobesityTinTdevelopingTcountries.TNutritionTreviews,T70(1),T3-21(2012). Pradhan,TO.TA.THumanTCapitalTFormationTandTEconomicTGrowthTinTIndiaT:TATCGETAnalysis.TNationalTCouncilTofTAppliedTEconomicTResearchT(2012)T. Ranis,TS.T(2000).TEconomicTGrowthTandTHumanTDevelopment.TWorldTDevelopmentTVol.28T,T197-219. Ravn,TB.TA.TGrowth,THumanTCapitalTSpilloversTandTInternationalTPolicyTCoordination.TJournelTofTEconomicsT,T495-515T(1993)
ALLAMATIQBALTOPENTUNIVERSITYTestingTtheTRelationshipTbetweenTHumanTcapitalTandTEconomicTGrowth:TaTStudyTofTPakistanAuthorTnameMuhammadTAzeemTBhattiThesisTsubmittedTforTtheTdegreeTofTM.com27TAugust,T2017TCHAPTERT1INTRODUCTION1.1TBackgroundTofTtheTstudySustainedTeconomicTgrowthTaccompaniedTwithTsocialTdevelopmentTisToneTofTtheTnotableTmacroeconomicTobjectivesTofTeveryTcountryTandTinTthisTregardThumanTcapitalTisTdeemedTasTanTessentialTingredient.InTPakistan,TlargeTpartTofTpopulationTliesTbelowTtheTpovertyTline.TMostTofTtheTpolicyTmakersTargueTthatTbyTeconomicTgrowth,TweTcanTreduceTtheTpovertyTandTunemploymentTbutTinTPakistan,TsituationTisTnotTlikeTthis.TTheTmainTreasonTofTslowTeconomicTgrowthTinTPakistanTisTpoorTqualityTofTeducation,TlackTofTgoodThealthTfacilities,TeducatedTunemploymentTandTlackTofTskilledTmanpower.InTPakistanTforTpovertyTelimination,TitTisTnecessaryTthatTgovernmentTallocateTmaximumTbudgetTonThumanTcapitalTformation,TbecauseTitTisTanTactiveTfactorTofTproduction.TManyTresearchersTusedTdifferentTproxiesTforTmeasuringTtheThumanTcapitalTformation.TTheTpresentTliteratureTexpressedThumanTcapitalTbyTeducationTandThealthTcomponents.TEducationTandThealthTareTmainTfactorsTofThumanTcapitalTformation,TbecauseTinTorderTincreaseTgrowthTrateTofTproductivityTandTpeopleTmustTbeTskilledTandTfreeTfromTdiseases.DespiteTtheTsignificanceTofThealthTandTeducationTsectorTforTeconomicTgrowthTofTanyTeconomy;TtheseTareTmostTignoredTsectorsTinTPakistan.TForTboostingTupTtheseTsectorsTitTisTrequiredTtoTplanTpoliciesTandTprogramsTthatTadvantageTtheTpoorTpeople.THumanTcapitalTisTanTimportantTingredientTofTeconomicTgrowth.TByTincreasingTinvestmentTonThumanTcapitalTandTcreatingTmoreTdynamicTlaborTforce,TwillTgetsThigherTfutureTgrowthTandTincome.TIfTPakistanTgovernmentTspendsTmoreTonThealthTsocietyTandTindividualTgetTbenefitsTfromTinvestmentTonTandTeducationTsectors,TthisTwillTleadsTtoTimproveTtheTlivingTstandardTofTpoor.1.2TProblemTStatementInTPakistan,TlargeTpartTofTpopulationTliesTbelowTtheTpovertyTline.TMostTofTtheTpolicyTmakersTargueTthatTbyTeconomicTgrowth,TweTcanTreduceTtheTpovertyTandTunemploymentTbutTinTPakistan,TsituationTisTnotTlikeTthis.TTheTmainTreasonTofTslowTeconomicTgrowthTinTPakistanTisTpoorTqualityTofTeducation,TlackTofTgoodThealthTfacilities,TeducatedTunemploymentTandTlackTofTskilledTmanpower.TheTpresentTliteratureTexpressedThumanTcapitalTbyTeducationTandThealthTcomponents.TEducationTandThealthTareTmainTfactorsTofThumanTcapitalTformation,TbecauseTinTorderTincreaseTgrowthTrateTofTproductivityTandTpeopleTmustTbeTskilledTandTfreeTfromTdiseases.1.3TResearchTGap.EducationTandThealthTisTgrowingTrapidlyTacrossTtheTworldTdueTtoTtheirTdistinctiveTcharectersticsTandTimportanceTinThumanTlifeTandTeconomiesTofTtheTcountries..TYouTneedTtoTincreaseTyourTinvestmentTinTEducationTandTHealthTsectorsTsoTyouTcanTincreaseTtheTlivingTstandardTofTtheTpeopleTandTearnTmoreTprofitTdueTtoTskilledTlaboureTwhoTworkedT78%TmoreTefficientlyTandTeffectively.1.4TSignificanceTofTStudyHealthTandTEducationTsectorTisTalwaysTimportantTandThisTimportanceTisTincreasingTrapidlyTdayTbyTdayTdueTtoThisTgreatTinfluenceTinTeconomyTofTanyTcountry.ThereTareTfewTstudiesTavailableTinTimportanceTofTtheseTfactorsTbuttTtheseTstudiesTdidTnotTcoverTallTaspects.TInTthisTstudyTweTinsureTtoTcoverTallTimportantTaspectsTofTtheseTfactorsTtoTprovideTgoodTandTqualityTinformationTtoTgovernmentTthatTcanThelpThimTinTbetterTwayTtoTourTcameTtheTproblemsTofThealthTandTEducationTtoTboostTtheTcountryTeconomyTwithTefficiencyTandTeffectiveness.1.5TResearchTQuestionInTeconomyTofTPakistanTtheTimpactTofThumanTcapitalTandTeconomicTdevelopmentTfactorsTrelationship.HowTtheseTfactorsTcontribute?WhatTbenefitsTweTcanTenjoyTbecauseTofTtheseTfactors.1.6TResearchTObjectiveTheTmainTfocusTofTtheTstudyTisTtoTfindToutTtheTrelationshipTofTHumanTcapitalTandTEconomicTdevelopmentTinTtheTenvironmentTofTtheTPakistanTandThowTtheseTfactorsTcontributesTmoreTefficientlyTandTeffectivelyTinTtheTeconomiesTandTovercomeTunstructuredTproblemsTandTincreaseTtheTefficiency.CHAPTERT2LITERATURETREVIEWTHumanTCapitalTandTEconomicTDevelopmentTinTPakistan.AccordingTtoTeconomicTtheoryThumanTcapitalToptimallyTcontributesTinTformationTofTnationalTincome.TDevelopmentTeconomistsTandTpolicyTmakersTacrossTtheTworldTnowTfocusTonTtheTwalfareTandTdevelopmentTofTcountriesTandTimproveTtheTqualityTofThumanTcapital.TAccordingTtoT(PopkinTetTal.T2012),ThumanTcapitalTisTmostlyTlinkedTwithTvariationsTinToutputTperTworker.TAsTSolowTsuggestedTthat,ToutputT(Y)TdependsTonTKnowledgeTofTtheTworkerT(A)TandTstockTofTcapitalT(K)Y=F(K,AL)ALTdenotesTeffectiveTlaborTorTtechnologicalTprogressTwhileTtheTmodelTsummarizesTthatTmoreTknowledgeTwillTleadTtoTmoreTtechnologicalTprogressT(Rehman,T2012).TLiteratureTevidencedTthatTveryTfewTcountriesTreportedTeconomicTgrowthTwhileTfocusingTonTtheirTeducationTandThealthTsectors.TFindingsTevidencedTthatThigherTeducationTinTSouthTKoreaTisT98%,T94%TinTFinland,TandT60%TinTIsrael.TInTPakistanTitTisTaboutT7.8%,TwhereasTIndiaTenjoysT15%T(Oketch,T2006).THence,TtheTstudiesTreportedTthatThumanTcapitalTisTanTimportantTelementTofTgrowthTwhichTnotTonlyTdependsTonTeducationTandThealthTbutTalsoTonTtechnologicalTandTorganizationalTgrowth.TrendsTinTPakistan’sTHDIT1980-201348641026670Source:THumanTDevelopmentTReportT2013-PakistanInTPakistaniTcontext,TthereTareTmanyTstudiesTwhichTstudiedTtheTassociationTbetweenTGrossTDomesticTProductT(GDP)TgrowthTandTHumanTCapital.TResearchersTreportedTmixtureTofTinconsistencyTinTlastTsixtyTyearsTregardingTEconomicTandTsocialToutcomesTinTPakistan.TDueTtoTPoorTgovernanceTandTunstableTpoliticalTenvironmentTeconomicTgrowthThasTchangedTrespectively.TReportsTevidencedT1.7%TofTitsTGDPTspendingTonTchildrenTeducation.TWhileTonlyT0.22%TgoesTtoThigherTeducationT(Kulkarni,T2012).AgainstTtheTdetailsTgivenTabove,TtheTspecificTobjectivesTofTtheTstudyTincludeTtoTdetermineTtheTeffectTofThumanTcapitalTonTeconomicTgrowthTforTPakistanTandTsuggestingTpolicyTimplicationsTforTitsTimprovement.HumanTcapitalTisTveryTbroadTterm,TthereTareTmanyTfactorsTthroughTwhichTitTcanTbeTenhancedTorTimproved.TWhenTtheTcountryTisTonTitsTwayTtoTachieveThighTproductivityTandTeconomicTdevelopment,TitTmustTensureTtoTenhanceTtheTeffortsTtoTraiseTtheTstandardsTofTitsThumanTcapitalTandTphysicalTcapital.TRavnT(1993)TexaminedTlinkTbetweenTpublicTpolicyTandTeconomicTdevelopmentTforTinterdependentTeconomies.TTheTstudyTformulatedTaTmodelTonTtheTbasisTofTendogenousTgrowthTtheory,TwhichTstatesTthatThumanTcapitalTdependsTonTpublicTexpenditures.TFindingsTofTtheTstudyTsuggestedTthatTgrowthTandTwelfareTareTreallyThigherTunderTcooperationT;TcountriesTareTlinkedTthroughTcross-countryTspilloversTthatTincreaseThumanTcapital.TATsimilarTkindTofTstudyTbyT(Haq,T2008)TpresentedTtwo-countryTendogenousTmodelTwithTmixedTagents.TResultsTpointedToutTthatTbecauseTofTwageTdifferential,TgrowthTandTincomesTofTmigrationTanTeconomyTcanTachieveThumanTcapitalTdevelopment.TTheTresultsTalsoTshowedTthatTtheTperfectTlaborTmobility,Twages,Ttaxes,TandTsubsidiesTwillTresultsTinTentireTpopulationTofTcountryTwithTlowerTwageTandTmigrationTwithThigherTwage.GregorioT(1996)TintroducedTtwoTenginesTofTgrowthTi.e.ThumanTcapitalTandTphysicalTcapital.TLater,TTempleT(1999)TcollectedTdataTfromT64TcountriesTandTevidencedTaTpositiveTrelationTbetweenToutputTandTeducationTlevelTafterTconductingTanTempiricalTanalysis.TRanisT(2000)TalsoTinvestigatedTcrossTcountryTanalysisTofTHumanTdevelopmentTinTtheTcontextTeconomicTgrowth.TTheTdataToverT1960TtoT1992TshowedTaTpositiveTandTsignificantTrelationTbetweenTpublicTexpendituresTandTinvestmentTrateTonThealthTandTeducation.KalemliT(2000)TstudiedTenhancedTlifeTexpectationTinTrisingTlevelTofThumanTcapital.TTheTmajorTconclusionsTincludedTthatTlowerTmortalityTrateTleadsTtoTraiseTextentTtheTschoolingTwhichTisTeconomicallyTsignificant.TNoorbakhshT(2001)TcheckedTtheThypothesisTwhetherTtheTtotalTforeignTdirectTinvestmentT(FDI)TdirectedTtoTlimitedTcountriesThelpsTtoTincreaseTtheTqualityTofThumanTcapital.TItTconcludedTthatTFDIThelpsTtoTraiseTtheTskillsTandThumanTresourceTcapabilitiesTinTdevelopingTcountries.TAnotherTanalysisTbyTAgiomirgianakisT(2001)TstudiedTEconomicTgrowthTandTHumanTCapitalTdevelopmentTinTGreece.EmpiricalTmodelTisTestimatedTbyTusingTSoytasTandTSariT(2003)Tco-integrationTmethodTandTGrangerTCausalityTTest.TDataTcompriseTofTperiodTfromT1960TtoT1994.TSignificantTresultsTwereTreportedTforTGDPTandTeducation.TResultsTsuggestTthatThigherTlevelTofTeconomicTdevelopmentTleadsTtoTincreaseTinTdemandTforThigherTeducation.TFurthermoreTstudyTalsoTsuggestedTthatTpolicyTmakersTinvestTfundsTinTeducationTsectorTthatTprovideTskills.TPradhaT(2012)TalsoTstudiedTgrowthTandThumanTcapital.TTheTanalysisTwasTdoneTinTthreeTgroupsTofTcountriesTi.eTadvancedTeconomies,TnewlyTdevelopedTeconomiesTandTlessTdevelopedTeconomiesTgTWeightedTLeastTSquareT(WLS)TtechniqueTwasTusedTtoTcalculateTtheTresults.TFindingsTdemonstratedTvariableTrelationshipTbetweenTgrowthTandTeducation.TKhodabakhshiT(2011)TinvestigatedTmeasuresTofThumanTcapitalTfromTaTbroadTpanelTofTcountries.TStudyTconsistsTofT108TcountriesTusingTtimeTseriesTdataTfromT1960TtoT2000.TEmpiricalTanalysisTisTconductedTbyTusingTGiniTCo-efficient.TFindingsTofTstudyTshowedTthatTmaximumTnumberTofTcountriesThaveTmanagedTtoTdecreaseThumanTcapitalTinequalityTandThenceTachievedTdevelopment.TResultsTshowedTthatThumanTcapitalTinequalityTnegativelyTimpactsTeconomicTgrowthTrate.TItTwasTconcludedTinTtheTstudyTthatTeducationTinequalityTisTrelatedTwithTlowerTinvestmentTrateTandTalsoTlowerTincomeTgrowth.TRecommendationsTincludeTthatTpoliciesTshouldTbeTconductedTtoTpromoteTlevelTofTgrowth,TeducationTandThumanTcapital.SpagatT(2006)TdiscussedTtheTlinkTbetweenThumanTcapitalTdistributionTandTitsTlong-runTprospectsTinTtransitionTeconomies.TItTshowedTthat,TinTtransitionTeconomiesTeducationalTachievementsTareThighTasTcomparedTtoTperTcapitaTGDPTandThighTinvestmentTinTeducationTleadsTtoTminimizeTcorruptionTandTmaximizeTtheTforeignTinvestment.TParkT(2006)TinvestigatedTgrowthTimplicationTandTpopulationTdistributionTinTtermsTofTeducation.TStudyTisTbasedTonTpooledTdataTcompriseTofT94TdevelopedTandTdevelopingTcountriesToverT1960-1995.OzcanT(2000)TinvestigatedTthatTroleTofThumanTcapitalTisTnecessaryTforTAfricanTregion.TStudyTtriedTtoTassessTtheTlinkTbetweenThumanTresourceTdevelopment,TinvestmentTinTphysicalTcapitalTandTgrowth.TConclusionTdrawnTincludeTthatTslowTgrowthTinTlaborTproductivityTisTdueTtoThighTinvestmentTinTphysicalTandThumanTcapitalTBaldacciT(2008)TinvestigatedTeffectsT(bothTdirectTandTindirect)TofTsocialTspendingTandTeconomicTpolicyTinterventionsTonTeconomicTgrowthTandThumanTcapital.TTheTdataTwasTcollectedTfromT118TdevelopingTcountriesTinTaTtimeTperiodT1975TtoT2000.TTheTresultsTevidencedTdirectTandTsignificantTeffectTofTspendingTonTeducationTandThumanTcapital.TReiterT(2011)TinvestigatedTassociationTbetweenTforeignTdirectTinvestmentT(FDI),TeconomicT;ThumanTdevelopment.TPanelTdataTwasTcollectedTfromT49TdevelopingTcountriesToverT1980-2005TandTPanelTlinearTregressionTwasTuseTtoTestimatesTtheTresult.TFindingsTreportedTpositiveTassociationTbetweenTstudyTvariablesAfzalT(2011)TstudiedTeducationTandTeconomicTgrowthTinTcontextTofTPakistanTfromT1990TtoT2009.TAutoregressiveTDistributedTLagT(ARDL)TandTGrangerTCausalityTApproachTwereTusedTforTestimation.TResultsTevidencedTthatThigherTeducationTcausesThigherTeconomicTgrowth.TFurthermoreTitTalsoTshowedTthatTlaborTforceTandTeducationTcontributeTsignificantlyTinTeconomicTgrowth.TMoreoverTgovernmentTmustTfocusTonTplanningTbetterTeducationTsystemTespeciallyThigherTeducationTsoTthatTcountryTwillTmoveTtowardTdevelopment.TAdoptTwaysTtoTpromoteTprimaryTeducationTbecauseTprimaryTeducationTisTservingTasTanToutputTforTallThigherTlevelsTofTeducation.WhileTgoingTthroughTtheTliteratureTreview,TitTisTconcludedTthatTthereTisTsubstantialTamountTofTliteratureTthatTdiscussedTtheTroleTandTimportanceTofThumanTcapitalTforTenhancingTtheTeconomicTdevelopmentTandToverallTproductivityTofTaTcountry.TKeepingTinTmindTthisTfact,TcurrentTresearchTconductsTanTempiricalTanalysisTforTtheTcaseTofTPakistanTtoTstudyTtheTlinkTbetweenThumanTcapitalTandTeconomicTgrowth.BenhabibTandTSpiegelT(1994)TinvestigatedTtheTimpactTofThumanTcapitalTonTeconomicTdevelopmentTofTdifferentTcountriesTandTstudiedTphysicalTandTHumanTcapitalTstocksTTheTdataTwasTcollectedTformTtheTcrossTcountryTandTwasTanalyzedTbyTgrowthTaccountingTregressionTandTusingTtheTCobbT-TDouglasTaggregateTproductionTfunction.TFindingsTofTtheTstudyTshowsTthatThumanTcapitalTisTinsignificantlyTrelatedTtoTeconomicTgrowth.TNumerousTstudiesThighlightedTdifferentTdeterminantsTofTinvestmentTandTeconomicTgrowth.TNoorbakhsh,TPanoliTetTal.T(2001)TstudiedTforeignTdirectTinvestmentT(FDI)TasTaTdeterminantTofThumanTcapitalTinTdevelopingTcountries.TResultsTevidencedTthatTforeignTdirectTinvestmentTisTaTsignificantTdeterminantTofThumanTcapitalTinTdevelopingTcountriesTfurtherTtheTresultsTwereTalsoTstatisticallyTsignificant.FafchampsTandTQuisumbingT(1998)TalsoTinvestigatedTtheTimpactTofThumanTcapitalTonTtheTlaborTallocationTandTproductivity.TTheTsampleTofTtheTstudyTincludedTdifferentThouseholdTfromTtheTfourTdistrictsTofTPakistan.TTheTfindingsTreportedThighTincomeTofThouseholdsThavingTmoreTmaleTeducatedTfamilyTmembers.TFurtherTtheTstudyTevidencedTinsignificantTimpactTofTproductivityTonTtheTproductionTofTlivestockTandTcrops.TTheTresultsTalsoTshowedTthatTfemaleTeducationTdoTnotThaveTsignificantTimpactTonTtheTproductivityTandTlaborTallocationTofTtheThouseholdTinTPakistanSomeTofTtheTstudiesTalsoTinvestigatedTtheTrelationshipTbetweenTeconomicTgrowthTandThumanTcapitalTinTPakistan.TJohansenT(1991)TapproachTwasTusedTtoTanalyzeTtheTdataTandTdeduceTresults.TTheTresultsTshowedTthatThumanTcapitalToutputTisTdirectlyTandTsignificantlyTrelatedTtoTforeignTtechnicalTsupportTfurtherTtheTstudiesTalsoTshowedTthatThigherTproductivityTofTsecondaryTschoolTinTPakistanTisTdependentTonTlowTlevelTofTtechnicalTsupportTandTlastlyTtheTresultsTalsoTsignifiesTthatThumanTcapitalTcontributeTminorTinTincreasingTGDPTperTheadT(AbbasT;Peck,2007)FigureT2TbelowTgivesTaTbriefTsketchTofTtotalTschoolTenrollmentTinTPakistanTandTIndiaTwhileTsplittingTtheTtimeTperiodTintoTtwoThalvesTFigureT2TTrendsTofTTotalTSchoolTEnrollmentsTofTPakistanTandTIndia,T1975-2013Source:TDataThasTbeenTtakenTfromTWorldTDevelopmentTIndicatorT(WDI)EducationalTsystemTofTPakistanTisTbasedTonTBritishTColonialTEducationalTSystemT(BCES).TWhenTPakistanTgotTindependence,TtheTcolonialTsystemTwasTlimited.TLater,TitTinvestedTlessTinTeducationTsectorTwhileTcomparatively;TIndiaTinvestedTmoreTinTeducationTsector.TInT1979TIndia’sTgrowthTrateTgoesTdownTandTitTaffectsTeducationTsector.TPakistan’sTeducationTorTschoolTenrollmentTrateTisTalmostTsameTduringT1975-1984.TInT1999-2000,T2.1%TofTGrossTNationalTProductT(GNP)TwasTspentTbyTgovernmentTofTPakistan.TFindingsTshowedTthatTwhenTcountry’sTpopulationTincreasesTatTannualTrateTofT2.4%TgovernmentTexpendituresTincreasesTbyT2.7%TofTGNP.TInT2001-2002,TtheTliteracyTrateTwasT50.5%.TIndia’sTschoolTenrollmentTrateTisTdecreasedTinT1998TandTthenTaTsharpTdecreaseTinT2004TisTshownTbecauseTofThighTfiscalTdeficits,TloansTformTIMF.TInTthisTperiodTIndiaTwasTonThighTeconomicTcrisis.TThisTwillTaffectTeducationTsectorTtoTaTgreatTextentTbecauseTofTlowTinvestmentTinTthisTsector.HigherTlevelTofTeducationTaffectsTtheTlabor,TEfficiencyTandTtechnicalTadvancementTwhichTinTturnTincreaseTtheTspeedTofTeconomicTgrowth.TStudyThighlightedTlong-runTrelationshipTbetweenThumanTcapitalTformationTandTeconomicTgrowth.ForTeffectiveTutilizationTofTotherTresources,TitTisTnecessaryTtoTimproveTtheTskillsTandTcapacityTofTpeopleTbyTeducationTandTprovisionTofThealthTfacilities.TInTthisTwayTPakistanTisTableTtoTreducedTunemploymentTandTimprovesTlevelTofTeconomicTgrowth.TTheTaimTofTstudyTisTtoTinvestigateTtheTrelationshipTbetweenTeconomicTgrowthTandThumanTcapitalTformationTinTPakistan.TGiveTpolicyTrecommendationTforTdevelopmentTandTsustainableTgrowthTofTPakistan.TheTgovernmentTofTPakistanThasTfailedTtoTreapTtheTmaximumTbenefitsTfromThumanTcapitalTdueTtoTlessTemphasisTandTlessTbudgetTallocationTtoTsocialTsector.TDespiteTalmostTthreefoldTincreaseTinTtotalTexpenditureTofTpublicTsectorTsinceT2001,TtheTgovernmentTspendingTonThealthTandTeducationThasTremainedTlow.InTfactTspendingTonThealthTasTaTpercentageTofTGDPThasTevenTdeclinedToverTtimeTasTitTwasT0.72%TofTGDPTinT2001TwhichTdeclinedTtoT0.54%TofTGDPTinTyearT2009.TInTtermsTofTeducationTspendingTPakistanTisToneTofTtheTlowestTinTtheTSouthTAsiaTandTinTtermsTofThumanTdevelopmentTindexTlatestTrankingTofT2010,TPakistanTrankedTatT125thTpositionTwhereasTIndiaTrankedTatT119thTposition,TMaldivesTrankedTatT107thTposition;TSriTLankaTrankedTatT91stTposition.TTheTtwoTotherTcountriesTofTtheTregion,Ti.e.TBangladeshTandTNepal,TareTconsideredTtoTbeTlowThumanTdevelopedTnationsTandTrankedTatT129thTandT138thTrespectively.MostTofTtheTempiricalTresearchTconductedTonTtheTsubjectTmatterTonTPakistanTeconomyThasTdefinedThumanTcapitalTinTtermsTofTeducationTindicatorsTorTinTtermsTofThealthTindicators.TTheseTindicatorsTaloneTfailTtoTcaptureTdevelopmentTandTskillsTofTtheTlaborTforce;Ttherefore,TthereTisTaTneedTtoTconductTresearchTonTthisTaspectTthatTusesTmuchTbroaderTmeasureTofThumanTcapitalTinTtheTcontextTofTPakistanTeconomy.TTheTpresentTstudyTisTanTattemptTtoTuseTbroaderTmeasureTofThumanTcapitalTasTitTusesTeducationTindexTandThealthTindexTasTproxiesTforThumanTcapital.DuringTtheTpastTcentury,TtheTfocusTofTresearchersTremainedTonTtheTimpactTofThumanTcapitalTonTeconomicTgrowthTbyTincreasingTtheTfacilitiesTofTeducationTandThealth.TATnumberTofTempiricalTstudiesThaveTdocumentedTaTstrongTandTpositiveTrelationshipTbetweenThumanTcapitalTandTeconomicTgrowth.THowever,TthisTrelationshipTbetweenTtheTvariablesTremainedTambiguous.SchultzT(1971)TandTBeckerT(1962)TbothThaveTdevelopedTandTanalyzedTgrowthTmodelsTaugmentedTwithThumanTcapitalTandTfindTsignificantTpositiveTassociationTbetweenTeconomicTgrowthTandThumanTcapitalTformation.TAccordingTtoTPritchettT(1996),TempiricalTresultsTofTcrossTcountryTmacroTstudiesTareTcontroversialTandTinconsistentTwhereasTresultsTofTmicroTstudiesTareTconsistentTandTbothThaveTshownTpositiveTimpactTofTeducationTandThealthT(proxiesTforThumanCapital)TonTindividual’sTproductivityTandTincome.TEarlierTcrossTcountryTmacroTstudiesTfindTsignificantTpositiveTimpactTofThumanTcapitalT(education)TonTeconomicTgrowth,TseeTforTexample,TBarro,T1991;TKyriacou,T1991.TWorldTBank’sTstudyT”EastTAsianTMiracle”TinT1993TalsoThighlightsTthatTgrowthTinThumanTcapitalThasTcausedTrapidTdevelopmentTofTEastTAsianTcountries.TRosenzweigT(1990)TpointsToutTthatTmajorTdeterminantTofThighTgrowthTofTdevelopedTcountriesTandTpoorTgrowthTofTunderTdevelopedTcountriesTisTdifferenceTinTtheThumanTcapitalTgrowth.TDevelopedTcountriesTareTcharacterizedTbyThighTstandardsTofTlivingTwhereasTdevelopingTcountriesTareTnot.SachsTandTWarnerT(1997)TfindTquadraticTrelationshipTinThealth-growthTnexus.TTheyTassertTthatTimprovementTinThealthTstandardsTdoTimproveTeconomicTgrowth,Thowever,TwhenThumanTcapitalTincreases,TeconomicTgrowthTalsoTincreasesTbutTatTaTdecreasingTrate.TStewartTetTal.T(1998)TtryTtoTexploreThumanTdevelopmentTandTeconomicTgrowthTnexusTusingTcrossTcountryTstatisticsT(includingT35TtoT76TdevelopingTcountries)TduringT1970-92.TTheyTidentifyTtwoTchains,Ti.e.ToneTfromThumanTdevelopmentTtoTeconomicTgrowthTandTotherTfromTeconomicTgrowthTtoThumanTdevelopment.TAccordingTtoTthem,TthereTexistsTstrongTtwoTwayTcausationTinThumanTdevelopmentTversusTeconomicTgrowthTnexus;Thowever,TstrengthTofTtheTpositiveTrelationshipTrunningTfromTeconomicTgrowthTtoThumanTdevelopmentTdependsTonTfemaleTeducationTandTshareTofTpublicTexpenditureTinTsocialTservicesTwhereasTincomeTdistributionTandTinvestmentTrateTdetermineTtheTstrengthTofTpositiveTrelationshipTrunningTfromThumanTdevelopmentTtoTeconomicTgrowth.TAccordingTtoTFogelT(1994),TduringT1970sTandT1980sTapproximatelyToneTthirdTofTBritain’sTGDPTgrowthThaveTbeenTobservedTdueTtoTsubstantialTimprovementTinThealthTfacilities.AccordingTtoTTaniguchiTandTWangT(2003),TeducationTandThealthTbothTcauseTeachTotherTandTthusTcontributeTinTeconomicTgrowth.TWeilT(2001)TfindingsTrelatedTtoThealth-growthTnexusTfurtherTstrengthenTtheTimportanceTofThealthTforTeconomicTgrowth.TTheTstudyTconcludesTthatT17-20%TofTvariationsTinTincomeTacrossTcountriesTisTdueTtoTdifferencesTinThealthTstatus.TAgiomirgianakisTetTal.T(2002)TconductTpanelTstudyT(consistingTofT93Tcountries)TonTsubjectTmatterTandTfindTsignificantTpositiveTlong-runTimpactTofTeducationT(primary,TsecondaryTandTtertiary)TonTeconomicTgrowth.TBloomTetTal.T(2004)TtryTtoTinvestigateTtheTimpactTofThumanTcapitalTonTeconomicTgrowth.TByTutilizing,T2SLSTapproachTtheyTfindTthatTschoolingTandTlifeTexpectancyTbothTpositivelyTcontributeTtoTeconomicTgrowth.TImprovementsTinThealthTStandardsTareTassociatedTwithTincreaseTinToutputTdueTtoTincreasedTlaborTproductivityTandTcapitalTaccumulation.TSeebensTandTWobstT(2003);TMoserTandTEliotT(2005)TbothThaveTassertedTthatTinTtheTlong-runTeducationT(humanTcapital)TincreasesTsubstantiallyThouseholdTincomeTasTwellTasTeconomicTgrowth.THowever,TotherTstudiesTincludingTBillsTandTKlenowT(2000),TEasterlyTandTLevineT(2001),TTempleT(2001),TBosworthTandTCollinsT(2003)ThaveTfailedTtoTestablishTpositiveTassociationTbetweenThumanTcapitalT(yearsTofTschooling)TandTeconomicTgrowth.TInTcaseTofTPakistan,TmostTofTtheTstudiesThaveTusedTmicroTdataTonThumanTcapital.TTheseTstudiesTconcludeTthatTeducationTbringsTsignificantTpositiveTreturnsTforTwageTearnersT(forTdetailsTseeTNasirTandTNazilT(2001);TBehrmanTetTal.T(2008)).TUsingTmacroTdataTinTaTcomparativeTanalysisTofTPakistanTandTIndia,TAbbasTandTQaiserT(2000)TfindToverallTSignificantTandTpositiveTimpactTofThumanTcapitalT(schoolTenrollmentTratesTasTaTproxy)TonTeconomicTgrowthTduringT1970-1994.TTheyTuseThigherTsecondary,TsecondaryTandTprimaryTenrolmentTratesTforTobservingTtheTroleTofTeducationTinTeconomicTgrowth.TTheyTemployTOLSTonTstandardTgrowthTmodelTaugmentedTwithTvariablesTofTenrolmentTrates.TTheTresultsTofTtheTstudyTrevealTthatTprimaryTenrolmentTrateThasTpositiveTandTsignificantTimpactTonTeconomicTgrowthTonlyTinTcaseTofTIndia.THumanTcapitalTmeasuredTbyTsecondaryTandThigherTsecondaryTenrolmentTratesThaveTpositiveTandTsignificantTimpactTonTeconomicTgrowthTinTPakistan.TTheTstudyTindicatesTthatTpositiveTandTsignificantTimpactTofThumanTcapitalTonTeconomicTgrowthTinTbothTcountriesTwhenTproductionTfunctionTaugmentedTwithTeffectiveTlaborTinputTisTusedTinTestimation.TKhanT(2005)TtriesTtoTanalyzeTtheTrelationshipTbetweenThumanTcapitalTandTeconomicTgrowthTinT72TdevelopingTcountriesTforTtheTperiodT1980-2002.TTheTstudyTconcludesTthatTcountriesTwhichTinvestedTsignificantlyTinThumanTcapitalThaveTachievedThigherTreturnsTinTtermsTofTeconomicTgrowth.MalikT(2006)TusingTOLSTfailsTtoTfindTpositiveTassociationTbetweenThumanTcapitalTandTeconomicTgrowthTinTPakistanTandTwhenTheTusesT2SLSTestimationTtechniqueTtheTresultsTareTtotallyTopposite.TPeckTandTAbbasT(2008)TalsoTfindTpositiveTimpactTofTeducationTandThealthTonToutputTduringT1960-2003.TQadriTandTWaheedT(2011)TinvestigateTtheTimpactTofThumanTcapitalTonTPakistan’sTeconomicTgrowthTduringT1978-2007TandTfindTitTaThighlyTsignificantTdeterminantTofTeconomicTgrowth.TTheyTutilizeThealthTadjustedTeducationTindicatorTasTaTproxyTforThumanTcapitalTinTCobb-DouglasTproductionTfunctionTratherTdefiningThumanTcapitalTsolelyTinTtermsTofThealthTorTeducation.TKhatakTandTKhanT(2012)TuseTanalyticalTtechniques,Ti.e.TOLSTandTJohansenTcoTintegrationTtoTinvestigateTtheTimpactTofThumanTcapitalTinTeconomicTgrowthTofTPakistanTforTtheTperiodT1971-2008.TTheTresultsTsupportTsignificantTpositiveTassociationBetweenTsecondaryTeducationTandTeconomicTgrowth.AfterTreviewingTempiricalTliteratureTonTtheTsubjectTmatterTitTisTevidentTthatTinTcaseTofTcrossTcountryTstudiesTempiricalTresultsTremainedTinconclusiveTwhereasTinTaTsingleTcountryTanalysisTmostlyTstudiesTsupportTpositiveTassociationTbetweenThumanTcapitalTandTeconomicTgrowth.THowever,TitTisTobservedTthatTdifferentTstudiesThaveTusedTdifferentTproxiesTforThumanTcapitalTandTdifferenceTinTmeasurementTofThumanTcapitalTmayTbeTaTsourceTofTbiasTinTtheirTempiricalresults.TFurthermore,TitTcanTbeTconcludedTthatTearlierTstudiesThaveTusedTeducationTasTaTproxyTforThumanTcapitalTandTmoreTrecentTstudiesTlayTemphasisTonTbothThealthTandTeducationTasTaTproxyTforThumanTcapital.TTheTexistingTliteratureTonTPakistanTeconomyTshowsTthatTappropriateTproxiesTofThumanTcapitalTareTnotTusedTalongTwithTrecentTadvancesTinTdynamicTmodeling.TThereTexistsTaTgapTinTtheTliteratureTregardingTtheTroleTofThumanTcapitalTonTeconomicTgrowthTinPakistan.TTheTpresentTstudyTisTanTattemptTtoTbridgeTthisTgapTbyTanalyzingTtheTcausalTrelationshipTbetweenThumanTcapitalTandTeconomicTgrowthTusingTrecentTadvancesTinTdynamicTmodelingTandTmoreTappropriateTproxiesTforThumanTcapital.TTheTresultsTofTthisTstudyTmayTbeThelpfulTforTpolicyTmakersTinTdesigningTappropriateTpoliciesTgivingTpriorityTtoTtheTdevelopmentTofThumanTcapital.2.2TEDUCATIONTINTPAKISTANEducationTencompassesTbothTtheTteachingTandTlearningTofTknowledge,TproperTconduct,TandTtechnicalTcompetency.TItTthusTfocusesTonTtheTcultivationTofTskills,TtradesTorTprofessions,TasTwellTasTmental,TmoralTandTaestheticTdevelopment.THistoricalTbackgroundTWhenTPakistanTgainedTindependenceTinT1947,TWestTPakistanThadTonlyToneTinstitutionTofThigherTeducation,TtheTUniversityTofTtheTPunjab;TEastTPakistanThadTtheTUniversityTofTDhaka.TOverTtheTnextT20Tyears,TmanyTprivateTandTpublicTschoolsTandThigherTeducationTinstitutionsTwereTestablishedTtoThelpTfuelTtheTcountry’sTsocio-economicTdevelopment.TInTtheTearlyT1970’sTallTofTPakistan’sTeducationalTinstitutionsTwereTnationalizedTgovernmentTofTZulfikarTAliTBhutto,TwhoTwasTcommittedTtoTtheTideaTofTIslamicTSocialism.TForTtheTnextTdecade,TPakistan’sTentireTsystemTofTeducationTwasTstate-Trun.THowever,TtheTgrowingTdemandTforThigherTeducationTfastToutpacedTtheTestablishmentTofTnewTpublicTuniversities.TDuringTthatTperiod,TtheTsystemTcouldTaccommodateTonlyT25TpercentTofTtheHighTschoolTgraduatesTwhoTappliedTtoThigherTeducationTinstitutions.TTheToverTcrowdingTPromptedTmanyTwealthyTPakistanisTtoTseekTuniversityTdegreesTabroadTinTtheTUnitedTStates,TGreatTBritainTandTAustralia,TwhileTothersTsoughtToutTprivateTtutorsTatThomeTorTenteredTtheTjobTmarketTwithoutTaTdegree.TInT1979TaTgovernmentTcommissionTreviewedTtheTconsequencesTofTnationalizationTandTconcludedTthatTinTviewTofTtheTpoorTparticipationTratesTatTallTlevelsTofTeducation,TtheTpublicTsectorTcouldTnoTlongerTbeTtheTcountry’sTsoleTproviderTofTeducation.TByTtheTmid-1980s,TprivateTeducationalTinstitutionsTwereTallowedTtoToperateTonTtheTconditionTthatTtheyTcomplyTwithTgovernment-TrecognizedTstandards.TUntilT1991,TthereTwereTonlyTtwoTrecognizedTprivateTuniversitiesTinTPakistan:TAgaTKhanTUniversityTestablishedTinT1983;TandTLahoreTUniversityTofTManagementTSciencesTestablishedTinT1985.TByT1997,Thowever,TthereTwereT10TprivateTuniversitiesTandTinT2001-2002,TthisTnumberThadTdoubledTtoT20.TInT2003-2004TPakistanThadTaTtotalTofT53TprivateTdegreeTgrantingTinstitutions.TTheTrapidTexpansionTofTprivateThigherTeducationTisTevenTmoreTremarkableTifTweTlookTatTtheTnumberTofTinstitutionsTestablishedTonTaTyear-by-yearTbasis.TInT1997,TforTinstance,TthreeTprivateTinstitutionsTwereTestablished;TinT2001TelevenTnewTprivateTinstitutionsTwereTopened;TandTinT2002TaTtotalTofT29TprivateTsectorTinstitutionsTsprungTup.TTheTgovernmentThasTdecidedTtoTintroduceT’EnglishTMediumTEducation’TonTaTphasedTbasisTandTtoTsubstantiallyTendTtheTrightTtoT’MotherTTongueTEducation’.TThisTnewTpolicyTwhichTisTtermedT’EducationTSectorTReformsT(PolicyTdecisions)’,TstatesTthatT”EnglishTlanguageThasTbeenTmadeTcompulsoryTfromTClass-1Tonwards.”TandTtheT”IntroductionTofTEnglishTasTmediumTofTinstructionTforTScience,TMathematics,TComputerTScienceTandTotherTselectedTsubjectsTlikeTEconomicsTandGeographyTinTallTschoolsTinTaTgraduatedTmanner.2.3TRoleTofTTechnologyTinTEducationTforTEnhancingTEconomicTGrowthTinTPakistan.TechnologyThasTfoundTitsTwayTintoTeveryTaspectTofTourTcultureTtoday.TIt’sTinTmedicine,Tit’sTinTsocialTwork,TandTnoTevenTmoreTthanTitTuseTtoTbe,Tit’sTinTourTeducationTsystems1.TTeachersTareTcontinuallyTbeingTencouragedTtoTtakeTtechnologyTclassesTsoTthatTtheirTstudentsTcanTbenefitTfromTtheirTknowledge.TInTEducation,TtechnologyTplaysTareTroleTinTtheTclassroom,TinTassistiveTtechnologyTproducts,TandTsoftwareTthatTisTbroughtTintoTtheTschool.TSoTwhatTexactlyTisTtheTroleofTtechnologyTinTeducation?TTechnologyTisTmakingTitTpossibleTforTteachersTtoTreachTmoreTstudents,TallowingTstudentsTtheTtimeTtheyTneedTtoTsucceed,TandTprovidingTourTfutureTworkforceTwithTcompetent,TknowledgeableTemployees.TItTisTsoTtrueTthatTtechnologyTisTembeddedTinTourTculture,TandTthatTweTareTimmersedTandTdependentTonTit,TasTwell.TTechnologyTchangesTsoTrapidlyTandThasTsuchTaTpervasiveTimpactTthatTitTisTactuallyTdeterminingTourTculture.TChildrenTandTadolescentsTareTprimeTusersTandTbeneficiaries.TAdmininistratorsTandTeducatorsTneedTtoTkeepTpaceTwithTlifeToutsideTtheTclassroomTinTorderTtoTintegrateTandTaccessTtheTwonderfulTlearningTopportunitiesTtheTInternet,TiPods,TcellTphones,Tpodcasting,TandTevenTsocialTnetworkingTsitesTandTvideoTgameTplayToffer.TToday’sTyouthTspendThalfTtheirTleisureTtimeTinTfrontTofTscreensT-TitTisTaThugeTpartTofTtheirTlife.TTeachingTinTaTdydactic/lectureTformatTnoTlongerTworks,TandTitTisTnotTutlizingTtheTpowerTofTtechnologicalTadvances.TTeachersTneedTtoTinviteTstudentsTtoTlearnTbyTusingTwhatTtheyTknowTbest-technologyTgadgets.2.4TTheTlongTtermTimpactTofThealthTonTeconomicTgrowthTinTPakistan.HumanTcapitalTplaysTpivotalTroleTforTsustainableTeconomicTGrowth.TAsTdifferentTgrowth,TtheoriesTsuggestTtheTroleTofThumanTcapitalTasTaTsignificantTforTgrowthTprocess.TTheTconceptTofThumanTcapitalTinTeconomicTliteratureTdefinedTbroadlyTbyTincludingTeducation,Thealth,Ttraining,Tmigration,TandTotherTinvestmentsTthatTenhanceTanTindividual’sTproductivity.THowever,TtheTgrowthTeconomistsTthatThaveTincorporatedThumanTcapitalTinTtheTgrowthTstudies;TpaidTgreaterTattentionTonTanalysingTtheTimpactTofTeducationTonTeconomicTgrowth,TwhileTignoringTtheTroleTofThealthThumanTcapital.TItTisTonlyTinTveryTrecentTtimesTthatTstudiesThaveTstartedTlookingTatThealthTandTtriedTtoTestimateTtheTrelationshipTbetweenThealthTstatusTandTeconomicTgrowth.TThereTexistsTaTtwo-wayTrelationshipTbetweenTimprovedThealthTandTeconomicTgrowth.HealthTandTotherTformsTofThumanTandTphysicalTcapitalTincreasesTtheTperTcapitaTGDPTbyTincreasingTproductivityTofTexistingTresourcesTcoupledTwithTresourceTaccumulationTandTtechnicalTchange.TFurthermore,TsomeTpartTofTthisTincreasedTincomeTisTspentTonTinvestmentTinThumanTcapital,TwhichTresultsTinTfurtherTperTcapitaTgrowth.TAccordingTtoTFogelT(1994),TapproximatelyToneTthirdTofTGDPTofTBritainTbetweenT1790TandT1980TisTtheToutcomeTofTimprovementsTinThealthTespeciallyTimprovementTinTnutrition,TpublicThealth,TandTmedicalTcareTfacilitiesTandTtheseTimprovedThealthTfacilitiesTshouldTbeTconsideredTasTlabourTenhancingTtechnicalTchange.TOnTtheTotherThand,TEconomicTdevelopmentTresultsTinTimprovedTnutrition,TbetterTsanitation,TinnovationsTinTmedicalTtechnologies;TallTthisTincreasesTtheTlifeTexpectancy,TreducesTtheTinfantTmortalityTrate.TWorldTDevelopmentTreportT2007TdepictsTtheTsituationTisTbyTconcludingTthatTAverageTlifeTexpectancyTatTbirthTworldwideTroseTfromT51TyearsTtoT65TinTlessTthanT40Tyears.TSimilarlyTAverageTlifeTexpectancyTinTdevelopingTcountriesTwasTonlyT40TyearsTinT1950TbutThadTincreasedTtoT63TyearsTbyT1990T(WorldTBankT1993).TPrestonT(1976)ThasTanalysedTvariousTdeterminantsTofTlifeTexpectancyTandTemphasizedTthatTeconomicTdevelopmentTisTtheTmostTimportantTfactor.TPurposeTofTthisTpaperTisTtoTanalyseTtheTlong-termTrelationshipTbetweenThealthTandTperTcapitaTGDP,TbyTusingTCointegrationTandTGrangerTCausality.TLong-termTanalysisTofThealthTandTeconomicTgrowthTwouldTbeTveryThelpfulTinTdeterminingTtheTpossibleTmagnitudesTofTfullyTaccumulatedTeffectsTofThealthTonTeconomicTgrowth.TheTorganizationTofTtheTpaperTisTasTfollows:someTofTtheTpreviousTstudiesTconductedTonTtheTsubjectTofTtheTrelationshipTbetweenTeconomicTgrowthTandThealthTstatus.TSectionT3TdescribesTtheTstatusTofThumanTcapitalTsituationTinTPakistan.InTSectionT4TEconometricTModelTandTdataTusedTinTtheTstudyTwasTdiscussedTwhichTmakeTtheTAnalyticalTFrameworkTofTtheTpaper.TSectionT5TdiscusesTtheTresultsTandTmainTfindingsTofTtheTanalysisTandTinTsectionT6TtheTconclusionTemergesTfromTtheTstudyTareThighlighted.TLiteratureTReview:TAsTmentionedTinTintroductionTthatTnumerousTstudiesTwereTconductedTonTtheTrelationshipTbetweenThumanTcapitalTdevelopmentTandTeconomicTgrowth.TTheTmainTconclusionTofTtheseTstudiesTisTthatTthereTexistsTaTpositiveTrelationshipTbetweenThumanTcapitalTandTeconomicTgrowth.1TItTisTonlyTlastTdecadeTthatTthereTisTaTflurryTofTstudiesTexploringTtheTrelationshipTbetweenThealthTandTeconomicTgrowth.TByTusingTtheTadultTsurvivalTrateTasTanTindicatorTofThealthTstatus,TBhargavaTetTalT(2001)TfindsTpositiveTrelationshipTbetweenTadultTsurvivalTrateTandTeconomicTgrowth.TResultsTremainsTsimilarTwhenTadultTsurvivalTrateTisTreplacedTbyTlifeTexpectancy.However,TfertilityTrateThaveTaTnegativeTrelationshipTwithTeconomicTgrowth.TBecause,TlifeTexpectancyTisTextremelyTinfluencedTbyTtheTchildTmortality.TGrowthTinTworkforceTisTmostlyTlowerTthanTpopulationTgrowth.TResultantlyThighTfertilityTrateTreduceTtheTeconomicTgrowthTbyTputtingTextraTburdenTonTscareTresources.TMayerT(2001)TalsoTusesTtheTprobabilityTofTadultTsurvivalTbyTgenderTandTageTgroupTasTaTmeasureTofThealthTstatus.TByTusingTGranger-type,TcausalityTtestTstudyTconcludesTthatThealthTstatusTcausesTeconomicTgrowthTinTLatinTAmericaTgenerally,TandTspecificallyTinTBrazilTandTMexico.TImprovementsTinTadultThealthTareTassociatedTwithT0.8–1.5%TincreaseTinTannualTincome.TMoreover,TtheTgrowthTimpactTisThigherTforTimprovementsTinThealthTofTfemaleTcomparedTwithThealthTofTmale.TBloomTetTalT(2004)TbyTusingT2SLSTtechniqueTfindsTthatTlifeTexpectancyTandTschoolingThaveTaTpositiveTandTsignificantTeffectTonTGDP.TImprovementsTinThealthTincreaseTtheToutputTnotTonlyTthroughTlabourTproductivity,TbutTalsoTthroughTtheTCapitalTaccumulation.TStudyTalsoTfindsTthatTimprovementTofToneTyearTinTaTpopulation’sTlifeTexpectancyTresultedTintoTanTincreaseTofT4%TinToutput.TByTusingTtheTaverageTheightTadultTsurvivalTrateTandTlifeTexpectancyTasTanTindicatorTofThealthTstatusTWeilT(2001)TfindsTthatThealthTisTanTimportantTdeterminantTofTincomeTvariationsTinTdifferentTcountries.TApproximatelyT17-20T%TofTtheTcross-countryTvariationTinTincomeTcanTbeTexplainedTbyTcross-countryTdifferencesTinTstatusTofThealth.TArora(2001)TusesTtheTlifeTexpectancyTatTbirth,TatTagesTfive,Tten,Tfifteen,TorTtwenty,TandTstructureTofTadulthoodTasThealthTindicatorsTforT10TindustrialTcountries.TStudyTconcludesTthatTimprovementTinThealthTstatusThasTincreasedTtheTpaceTofTlong-termTeconomicTgrowthTbyT30-40T%.TItTalsoTconcludesTthatThighTrateTofTdiseaseTprevalenceTandTdeathsTareTamongTtheTmainTreasonsTforTpoorTlong-termTgrowthTinTdevelopingTcountries.TLorentzenTetTalT(2005)TanalysisTtheTimpactsTofTadultTmortalityTrateTonTeconomicTgrowth.TStudyTfindsTthatThighTmortalityTrateTreduceTtheTeconomicTgrowthTbyTcurtailingTtheTtimeThorizon.TResultantlyTpeopleTtakeTactionsTthatTyieldTshort-termTbenefitsTatTtheTlong-termTcost.TStudyTalsoTconcludesTthatTfertility,TinvestmentTinTphysicalTandThumanTCapital,TareTtheTchannelsTbTadultTmortalityTrateTaffectsTeconomicTgrowth.TMeasuringThealthTstatusTbyThealthTstatusTbyTinfantTmortalityTrate,TlifeTexpectancyTrateTandTcrudeThealthTrateTandTperTcapitaTGNITasTindicatorTofTeconomicTgrowth;TMalikT(2006)TfindsTthatTifTOLSTisTusedTthenTthereTisTnoTsignificantTrelationshipTbetweenThealthTstatusTandTeconomicTgrowth.THowever,TwhenT2SLSTisTusedTthenTstudyTfindsThighlyTsignificantTeffectTofThealthTindicatorsTonTeconomicTgrowth.HypothesisTthatT”HumanTcapitalTisTpositivelyTandTsignificantlyTrelatedTtoTeconomicTgrowth.”TwoTmainThypothesesTwouldTbeTtested;HypothesisTthatT’healthTaffectsTeconomicTgrowth’TisTaTlongTrunTphenomenonTwouldTbeTtested.T2-TWhether,TthereTexistsTaTtwo-wayTcausalityTorTcausalityTisTunidirectionalTbetweenThealthTandTperTcapitaTGDP.CHAPTERT3.DataTSource/TDescriptionTofTVariablesAnnualTtimeTseriesTdata-setTfromT1975TtoT2013ThasTbeenTutilizedTtoTconductTpresentTanalysis.TDataTisTcollectedTfromTEconomicTSurveyTofTPakistan,TInternationalTFinancialTStatisticsT(IFS),TGovernmentTFinancialTStatisticsT(GFS),TandTWorldTDevelopmentTIndicatorsT(WDI).TDependentTvariableTinTtheTstudyTisTgrowthTrateTofTrealTGDPT(LYt).TWhereasTexplanatoryTvariablesTinclude::EducationTExpendituresT(LEDEXP):TEducationTexpendituresTareTtakenTasTaTshareTofTGDP.HealthTExpendituresT(LHEXP):THealthTexpendituresTareTtakenTasTaTshareTofTGDPT(Haq,T2008).GrossTFixedTCapitalTFormationT(LSI):T(LSI)TisTtakenTasTanTindicatorTofTshareTofTinvestmentTinTGDPT(Sial.2010)MortalityTRateT(LMR):TItTisTtakenTasTaTshareTofTtotalTpopulationT(Ozcan,T2000).SecondaryTSchoolTEnrollmentTRateT(SENR)TheTlinkTbetweenTshareTofTinvestmentTinTGDPT(LSI),TsecondaryTschoolTenrollmentT(SENR),TtotalTeducationTexpendituresT(LEDEXP),TtotalThealthTexpendituresT(LHEXP),TandTmortalityTrateT(LMR)ThasTbeenTexaminedTbyTvariousTresearchersTinTtheTliteratureTincludingTTebaldiT(2012)T&TWaheedT(2011).TTheTfunctionalTformTofTmodelTcanTbeTexpressedTas:LYt=f(LSIt,LEDEXPt,LHEXPt,LMRt,LSENRt)TestableTFormTofTtheTModelTis:lnYt=?0+?1lnSIt+?2lnEDEXPt+?3lnHEXPt+?4lnMRt+?6lnSENRt+utForTempiricalTanalysis,Tfirstly,TAugmentedTDickeyTFullerT(ADF)TtestTwasTappliedTtoTidentifythatTwhetherTseriesTareTstationaryTorTnon-stationary.TFindingsTshowedTthatTAutoregressiveTDistributedTLagT(ARDL)TapproachTisTsuitableTforTestimatingTelasticitiesTofTtheTmodel.WhenTvariablesTareTofTdifferentTorderTofTintegrationTARDLTmethodTisTappliedTandTitTtakesTenoughTnumberTofTlagsTtoTcaptureTdataTgeneratingTprocedureTinTaTgeneralTtoTspecificTmodelingTframeworkT(Laurenceson,T2003).TThisTapproachTwasTdevelopedTbyT(Pesaran,T1998).TARDLTapproachThelpsTtoTavoidTproblemTofTnon-stationaryTtimeTseriesTdata.TItThasTfollowingTadvantages,TitTinvestigatesTtheTrelationshipTbetweenTsmallTsampleTsize,TitTdoTnotTrequiresTsameTorderTofTallTvariables,TitTavoidsTpre-testingTofTstationaryTissuesTandTcanTalsoTbeTusedTtoTtransformTError-CorrectionTModelTfromTSimpleTlinearTfromTit.TTheTARDLTrepresentationTofTtheTmodelTisTgivenTbelow:?lnLY=T?0T+i=1??i?lnLSIt-1+i=1??i?lnLEDEXPt-1+i=1??i?lnLHEXPt-1T+Ti=1??i?lnLMRt-1+Ti=1??i?lnLSENRt-1+T?1lnLSIt-1+T?2lnLEDEXPt-1+T?3lnLHEXPt-1+T?4lnLMRt-1+T?5lnLSENRt-1+T?tHere,T’ln’TshowsTnaturalTlogarithmToperator.T”TisTusedTasTfirstTdifferencesToperator.T?0TisTinterceptTofTmodelTandT?,T?,T?,T?,T?TareTcoefficientsTofTshortTrunTvariablesTwhereas,T?1T,T?2T,T?3T,T?4TandT?5TareTtheTcoefficientsTofTlongTrunTimpactTofTvariablesTatTtheTfirstTdifferencesTvariablesTandT?tTisTerrorTterm.CHAPTERT4.4.1TEmpiricalTestimationTresultsTofTunitTrootsTtestTheTAugmentedTDickeyTFullerT(ADF)TunitTrootTtestTisTusedTtoTcheckTtheTorderTofTintegrationTofTallTvariables.TTheTbelowTtableT5.1TshowsTthatTorderTofTintegrationTisTdifferentTthereforeTthisTstudyTappliedTAutoTRegressiveTDistributedTLagTtechnique.TableT1.TUnitTRootTTestTResultTforTPakistanVariables Level 1STTDifference OrderTofIntegrationLY -1.939446(-3.536601) -5.803001**(-2.945842) I(1)LSI -3.310777(-3.540328) -3.007069**(-1.950394)I(1)LSENR -0.242637(-2.941145)-5.126497**(-1.950117)I(1)LHEXP -0.810189(-1.949856) -5.300313**(-1.950394)I(1)LEDEXP -2.429129(-3.540328)-4.003207**(-1.950687)I(1)LMR -3.811472(-3.544284)-0.778091(-2.948404)I(0)Note:T**TshowsTsignificanceTatT5%TlevelTofTsignificanceTheseTresultsTofTtheTunitTrootTshowsTthatTgrowthTrateT(LYt),TshareTofTinvestmentT(LSI),TschoolTenrollmentTrateT(LSENR),THealthTexpendituresT(LHEXP),TEducationTExpendituresT(LEDEXP),TareTstationaryTatT1stTdifferenceTandTnon-stationaryTatTlevelTwhileTMortalityTrateT(LMR)TisTstationaryTatTLevel.4.2TResultsTofTBoundsTTestTheTcurrentTstudyTchoosesTtwoTasToptimalTlagTlengthTforTtheTvariableTsunderTstudy.TStudyTfindsTthatTaTco-integrationTexistsTbetweenT(LY),TlnT(SI),TlnT(EDEXP),TlnT(HEXP),TlnT(LSENR)TandT(LRM).TTheTresultTofTF-statsTforTbothTcountriesTisTgivenTinTbelowTtable.PakistanF-statistics Probability4.892513 0.0074ResultTofTBoundTTestTofTCo-integrationTableT3.TResultsTofTAutoTRegressiveTDistributedTLagT(ARDL)ShortTRunTElasticitiesVariables coefficient Std.error t-statistics Prob.C 7.978489 3.780582 2.110387 0.0454D(LSI) 0.279853*** 0.049691 5.631898 0.0000D(LMR) 0.632867 3.014940 0.209910 0.8355D(LHEXP) 0.120075*** 0.025662 4.679140 0.0001D(LEDEXP) -0.135792** 0.053079 -2.558321 0.1734D(LSENR)…
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