scholarly journals Educational Expansion and Economic Growth Nexus in Pakistan: Instrumental Variable Approach

2021 ◽  
Vol 5 (1) ◽  
pp. 1-17
Author(s):  
Ghulam Sarwar ◽  
Majid Ali ◽  
Najum Ul Hassan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Physical Capital ◽  
Poor Quality ◽  
Jel Classification ◽  
Educational Expansion ◽  
Variable Approach ◽  
Growth Equations ◽  
Lower Effect ◽  
Using Data

This study examines the relationship between economic growth and the expansion of education in Pakistan. The study utilizes 2SLS and GMM estimators to estimate the growth equations with a potential issue of endogeneity using data for the period 1973-2018. Empirical results show that educational expansion at the primary and secondary level effect economic growth positively. The evidence is quite compelling that the effect of educational expansion on economic growth is low due to the poor quality of education. Also, the lower effect of physical capital is due to lower human capital embodied in the labor force. Keywords: human capital; economic growth; GMM; Endogeneity; Pakistan. JEL Classification: O47, I21, C26

Immigration Wave: Soviet Jew Exodus

2018 ◽  
Author(s):  
Assaf Razin
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Soviet Union ◽  
Urban Areas ◽  
Physical Capital ◽  
Behavioral Characteristics ◽  
Soviet Jews ◽  
The Soviet Union ◽  
The World ◽  
Residential Capital

The disunion of the Soviet Union and the destruction of communism in the USSR 1987-1991 triggered the recent emigration wave of Soviet Jews to various parts of the world, primarily to Israel. The professional, social, attitudinal and behavioral characteristics of the 1990s Jewish exodus cohort proved to be distinctive. Immigrants came mostly from urban areas, with advanced education systems. Immigration produced massive investments, both in residential structures and in non-residential capital. These investments were so substantial that they increased the capital to labor ratio and facilitated economic growth, aided by the remarkable human capital brought by the immigrants. The massive investments in physical capital and infrastructures were financed by capital imports as immigrants themselves fled their former homes almost penniless and credit constrained so that they hardly saved.

THE EFFECT OF THE INFLUX OF FOREIGN LABOUR IN MALAYSIA BY AUGMENTED MRW MODEL

2015 ◽  
Vol 76 (13) ◽  
Author(s):  
Saiyidatul Saadah Ahmad Nizam ◽  
Rohanin Ahmad ◽  
Nur Arina Bazilah Aziz
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Production Function ◽  
Physical Capital ◽  
Common Phenomenon ◽  
Skilled Labour ◽  
Foreign Labour ◽  
Pros And Cons

There are pros and cons in hiring foreign labour on the economy. The influx of foreign labour is a common phenomenon, but when their involvement is unlimited it will be one serious issue. Malaysia is one of the developing countries where industrial and construction sectors are in need of labour and this has opened up opportunities for foreign labour. Their inflow into Malaysia is increasing every year and this has caused problems such as time-consuming construction due to low-skilled labour and crime problems caused by problematic labour. We augmented Mankiw-Romer-Weil model by isolating the foreign labour element in human capital to find the effect of the influx of foreign labour in Malaysian economic growth. The results from our model show that the employment of foreign labour increases the rate of human capital but decreases the rate of physical capital. Therefore, the level of the production function also decreases.

scholarly journals Population and Economic Growth Under Different Growth Engines

2017 ◽  
Vol 18 (2) ◽  
pp. 182-211 ◽  
Author(s):  
Alberto Bucci ◽  
Xavier Raurich
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Human Capital ◽  
Population Growth ◽  
Capital Accumulation ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Physical Capital ◽  
Long Run

Abstract Using a growth model with physical capital accumulation, human capital investment and horizontal R&D activity, this paper proposes an alternative channel through which an increase in the population growth rate may yield a non-uniform (i.e., a positive, negative, or neutral) impact on the long-run growth rate of per-capita GDP, as available empirical evidence seems mostly to suggest. The proposed mechanism relies on the nature of the process of economic growth (whether it is fully or semi-endogenous), and the peculiar engine(s) driving economic growth (human capital investment, R&D activity, or both). The model also explains why in the long term the association between population growth and productivity growth may ultimately be negative when R&D is an engine of economic growth.

Does Human Capital Strongly Affect Economic Growth Rates? Yes, But Only If Assessed Properly

2004 ◽  
Vol 3 (2) ◽  
pp. 115-134 ◽  
Author(s):  
Erich Weede
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Empirical Evidence ◽  
Growth Rates ◽  
Capital Endowment ◽  
Order Of Magnitude ◽  
Growth Equations ◽  
Catch Up ◽  
Economic Growth Rates ◽  
Human Capital Endowment

AbstractAlthough modern growth theories regard human capital endowment as a determinant of economic growth rates, econometric research does not consistently support this view by empirical evidence. In principle, this discrepancy might arise either from misleading theories or from poor measurement of human capital endowment. Here, it is argued that poor measurement is the culprit, and that one should substitute results from psychological testing, i.e.IQ, for widely accepted measures based on schooling. In order to demonstrate both the superiority of IQ over schooling derived measures as well as the robustness of IQ effects on growth, the new measure is entered in the Mankiw, Romer and Weil and the De Long and Summers frameworks which differ in the specification of growth equations and, in particular, in their treatment of investment. It is demonstrated that IQ effects are at least about equally strong and robust determinants of growth as catch-up opportunities, whether investment is included or excluded, narrowly or broadly defined. If investment is included, its effects are in the same order of magnitude as those of catch-up opportunities or IQ. Since IQ is correlated with state antiquity, since state antiquity might offer

Human Capital Model as a Strategy for Development of Weaving Home Industry in Sambas District of West Kalimantan

2017 ◽  
Vol 2 (3) ◽  
pp. 11-19
Author(s):  
Jamaliah Jamaliah
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Theory Development ◽  
Secondary Data ◽  
Population Data ◽  
Jel Classification ◽  
Industrial Workers ◽  
Economic Activities ◽  
Capital Theory ◽  
Human Capital Model

Objective - Goals of economic development is to increase economic growth, increase employment opportunity, equalize income distribution, and increase standard of living which will reach out community welfare. Therefore, to achieve all those goals, programs which can enhance economic activities with high intensity are needed. It will create more job opportunities and higher income, which mean poverty can be minimalized. One of the efforts to increase economic growth and public income is to develop human capital. The research is aimed to create the development of human capital model which includes training, skill, experience, and other supports particularly creativity and innovation and regarding enhancing welfare of weaving industry's workers. Methodology/Technique - This research used quantitative and qualitative methods with primary and secondary data which were taken by interviews, questionnaires, and observation. The research took place in several villages/districts in Sambas Regency, those were Jagur, Tumuk Manggis, Tanjung Mekar, Sumber Harapan, and Sajad districts. Considering that population data was not available accurately, respondents were selected based on purposive method and was adapted with the research goal. Findings - The research showed that human capital model to develop weaving industry was very likely to be done through comprehensive development by stakeholders in Sambas Regency (government and public figures), higher education institutions, and companies (business group) so that labour income could increase. Novelty - This developed model, then, is one of means that can be used to improve welfare of weaving industrial workers so that it can be new finding for human capital theory development. Type of Paper: Empirical Keywords: Human Capital, Household Weaving Industry Development, Stakeholders. JEL Classification: J01, J08, R11.

scholarly journals Macroeconomic Determinants of Economic Growth: A Review of International Literature

2016 ◽  
Vol 11 (2) ◽  
pp. 33-47 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Human Capital ◽  
Fiscal Policy ◽  
Empirical Studies ◽  
Physical Capital ◽  
Developed Countries ◽  
Empirical Literature ◽  
Macroeconomic Determinants ◽  
Determinants Of Economic Growth

AbstractThe paper conducts a qualitative narrative appraisal of the existing empirical literature on the key macroeconomic determinants of economic growth in developing and developed countries. Much as other empirical studies have investigated the determinants of economic growth using various econometric methods, the majority of these studies have not distinguished what drives or hinders economic growth in developing or developed countries. The study finds that the determinants of economic growth are different when this distinction is used. It reveals that in developing countries the key macroeconomic determinants of economic growth include foreign aid, foreign direct investment, fiscal policy, investment, trade, human capital development, demographics, monetary policy, natural resources, reforms and geographic, regional, political and financial factors. In developed countries, the study reveals that the key macroeconomic determinants that are associated with economic growth include physical capital, fiscal policy, human capital, trade, demographics, monetary policy and financial and technological factors.

Capital accumulation and growth in Hungary, 1924–2006

2011 ◽  
Vol 61 (2) ◽  
pp. 143-164 ◽  
Author(s):  
B. Leeuwen ◽  
P. Földvári
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Physical Capital ◽  
Volume Index ◽  
Growth Accounting ◽  
Simple Method ◽  
Long Run ◽  
Over Time

The objective of this paper is to analyse the role of both human and physical capital in economic growth in Hungary during the 20th century by extending the already available data on physical and human capital. Besides the standard measure for the volume of human capital, we develop a simple method to estimate the value of the human capital stock in Hungary between 1924 and 2006. While the volume index slowly grows over time, the value of human capital shows a decline during the late socialist period. Applying the value of human capital in a growth accounting analysis, we find that the Solow residual has no long-run effect on economic growth anymore.

Religion, human capital and growth

2015 ◽  
Vol 43 (1) ◽  
pp. 39-50
Author(s):  
Giuseppina Autiero ◽  
Concetto Paolo Paulo Vinci
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Design Methodology ◽  
Physical Capital ◽  
Religious Activities ◽  
Historical Evidence ◽  
Content Type ◽  
The Government ◽  
The One ◽  
Progressive Force

Purpose – The purpose of this paper is to examine how rulers by supporting religion influence the growth of human capital and physical capital. Design/methodology/approach – The authors consider a model where the government, on the one hand, sets the output quota transferred to religious activities and workers and entrepreneurs, on the other, choose human and physical capital, which are complementary. The findings of the model are used to interpret some historical evidence. Findings – When a religious denomination puts a strong emphasis on children’s education, the rulers who back religion, may encourage the diffusion of education among the followers of that denomination. Conversely secular rulers may face a religion that they consider a force opposing modernization and may develop a secular system promoting the diffusion of education. In both cases, the diffusion of education triggers the increase in physical capital and economic growth. Originality/value – The contribution of the paper is to show how religion may be either a progressive force and promote education by contributing to economic growth or present a conservative dimension opposing the diffusion and rise of human capital.

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