Role of Education in Economic Growth of Pakistan:  A Sectoral Analysis

Education and economic growth nexus is one of the abundantly researched topics in economics. The social returns of education in addition to its private returns makes it public good and justifies the use of public funds. While most of the studies conclude the positive relationship between the two, examples also exist of the negative relationship. However, there is a gap in the literature to find and compare the effect of education on the growth of agriculture, industry and services sector separately. This paper is particularly aimed to analyze the impact of different levels of education of employed persons on level and growth of national output, agriculture, industry & services sector output in Pakistan. The method of analysis is the autoregressive distributed lag model (ARDL). Each level of education is found to have a positive effect on the output per employed person both in the short-run and long-run except for agriculture sector. In the agriculture sector, each education level is negatively associated. The deeper analysis showed that the greater negative effect of employment evades the positive effect of education in the agriculture sector. The comparison of different sectors shows that primary education contributes more to the industrial sector. While the contribution of the secondary & tertiary education is highest in the services sector.

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SECTORAL ANALYSIS ON THE IMPACT OF ISLAMIC BANKS TO THE MALAYSIAN ECONOMY

Journal of Islamic Monetary Economics and Finance ◽

10.21098/jimf.v6i1.1119 ◽

2020 ◽

Vol 6 (1) ◽

Author(s):

Imam Wahyudi Indrawan ◽

Maya Puspa Rahman

Keyword(s):

Economic Growth ◽

Negative Relationship ◽

Islamic Banks ◽

Economic Sectors ◽

Growth Trend ◽

Agriculture Sector ◽

Sectoral Analysis ◽

Distributed Lag ◽

Long Run ◽

The Impact

Malaysia is a well-known Islamic finance hub with a growth trend in its Islamic financial assets. The growth of the Malaysian economy since independence has also been commendable, with a rising contribution from Islamic banking and finance. This study offers a different perspective by undertaking a sectoral analysis on the impact of Islamic banks in Malaysia. It aims to fill the gap in the literature by investigating how Islamic bank financing (IBF) affects economic growth in Malaysia, both overall and at the sectoral level. Three sectors are observed in this study: agriculture, industry and services. Both long-run and short-run analyses are undertaken for the data period 2007Q1 to 2018Q4. The Autoregressive Distributed Lag (ARDL) method is utilised where IBF is found to significantly and positively affect the economic growth of Malaysia, at the overall and sectoral level. Nonetheless, there is a negative relationship in the agriculture sector and no cointegration in the industry sector. The results of this study are expected to provide insights for policymakers in encouraging more optimalIslamic financing to economic sectors in Malaysia.

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The impact of education tax and investment in human capital on economic growth in Nigeria

10.26772/cijds-2020-03-02-05 ◽

2020 ◽

Vol 3 (2) ◽

pp. 77-86

Author(s):

Abubakar Aminu ◽

Keyword(s):

Economic Growth ◽

Human Capital ◽

Tertiary Education ◽

Distributed Lag ◽

Distributed Lag Model ◽

Long Run ◽

Lag Model ◽

The Government ◽

Capital Development ◽

The Impact

This paper investigated the impact of education tax and investment in human capital on economic growth in Nigeria utilizing the Non-Linear Autoregressive Distributed Lag Model of cointegration covering the period of 25 years from 1995 to 2019. The findings reveal that education tax and investment in human capital have positive and significant effect on the growth of the Nigerian economy over the sampled period. The paper recommends that in order to boost the economy, Nigeria would need to, among other policy frameworks, provide a suitable environment for ensuring macro-economic stability through effective utilization of income from education tax that will encourage increased investment in human capital in the public sector. In addition to income from education tax, for effective and speedy economic growth and development in Nigeria, the government, beneficiaries (students/parents), employers of labor and other stakeholders in the society should share the responsibility for financing primary, secondary and tertiary education, so as to provide a solid foundation for human capital development. However, as revealed in this paper, the contribution of education tax and investment in human capital is most likely to be realized over a long-run period than in the short term. Keywords: Education Tax; Investment; Human capital; Economic growth

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ANALISIS DAMPAK SEKTOR INDUSTRI MANUFAKTUR, KEMISKINAN DAN BELANJA PEMERINTAH BIDANG LINGKUNGAN TERHADAP KUALITAS AIR DI INDONESIA

Quantitative Economics Journal ◽

10.24114/qej.v4i2.17465 ◽

2020 ◽

Vol 4 (2) ◽

Author(s):

Azanul Akbar Lubis

Keyword(s):

Economic Growth ◽

Water Quality ◽

Negative Impact ◽

Manufacturing Sector ◽

Government Expenditure ◽

Well Being ◽

Industrial Sector ◽

Regional Budget ◽

The Impact ◽

Positive Effect

Manufacturing sector is one of the sectors that contribute to economic growth in Indonesia. Results of these contributions is the changing structure of the Indonesian economy from agriculture to the industrial sector. And poverty in Indonesia which is one indicator of well‐being in an area tend to be in 2000 to 2010 has a pattern that tends to decline, although not very significant. Of 2 (two) variables, namely the Manufacturing Sector and Poverty, the author tries to determine the impact of variables on water quality in Indonesia, by adding variable Expenditures Environmental Affairs as variables that also impact the water quality in Indonesia. Manufacturing Sector GDP, the number of poor, Regional Budget (APBD) Environmental Field, each is used as a proxy for the manufacturing sector, poverty and Environment Sector Government expenditure. The data is compiled based on 28 provinces in Indonesia in 2009, 2010 and 2011. The results obtained showed that the industrial sector and poverty have a negative impact on water quality while Government Expenditure Environment Sector positive effect on water quality in Indonesia.

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The Causality Between Agriculture, Industry, and Economic Growth: Evidence from Indonesia

ETIKONOMI ◽

10.15408/etk.v18i2.9428 ◽

2019 ◽

Vol 18 (2) ◽

pp. 155-168

Author(s):

Abdul Bashir ◽

S. Suhel ◽

A. Azwardi ◽

Dirta Pratama Atiyatna ◽

Ichsan Hamidi ◽

...

Keyword(s):

Economic Growth ◽

Agricultural Sector ◽

Industrial Sector ◽

Vital Role ◽

Added Value ◽

Short Term ◽

Agricultural Industry ◽

Vector Error Correction ◽

Agriculture Sector ◽

Agriculture Industry

The industry is the current engine of the Indonesian economy over the past three decades; the economic structure in Indonesia has the transformation from the agriculture sector to the industry sector. The objective of this study is to examine the causality between agricultural, industry, and economic growth in Indonesia. By using the vector error correction model (VECM), this research finds that in the long-term, there is directional causality from the industry added value, economic growth on the agricultural added value. Meanwhile, in the short-term, the variable of industry added value and economic growth has the two-way causality. Besides, the agricultural added value can only affect the industrial added value and economic growth in the short-term. These findings support the idea that the agricultural sector plays a vital role in the economy, such as increasing economic growth and growth in other sectors, especially the industrial sector in this case.JEL Classification: F40, L60, O13, O47

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THE CO-INTEGRATING RELATIONSHIP BETWEEN FINANCIAL INCLUSION AND ECONOMIC GROWTH IN THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY

Eurasian Journal of Economics and Finance ◽

10.15604/ejef.2021.09.03.003 ◽

2021 ◽

Vol 9 (3) ◽

pp. 170-188

Author(s):

Oscar Chiwira ◽

Keyword(s):

Economic Growth ◽

Negative Impact ◽

Negative Relationship ◽

Financial Inclusion ◽

Information And Communications Technology ◽

Broadband Internet ◽

Distributed Lag ◽

Long Run ◽

Financial Monitoring ◽

The Impact

This study examines the relationship between financial inclusion and economic growth in SADC. It uses panel data covering the period between 1995 to 2015 and employs the Autoregressive Distributed Lag (ARDL) Bounds and the Toda and Yamamoto and Dolado and Lutkepohl (TYDL) models to examine the co-integrating relationship and the direction of causality respectively. The impact of financial inclusion on economic growth, when measured by the mobile penetration rate and the number of bank branches, diminishes in the long run to an extent of having a negative relationship with economic growth. This implies possible thresholds beyond which a negative impact on economic growth is realized. The long-run influence of financial inclusion on economic growth is hinged on financial technologies, measured by fixed broadband internet services, which have great potential to foster unique financial inclusion and shift the economic paradigm, leading to a digitalized economy. Only financial inclusion initiatives that result in increased bank deposit accounts promote economic growth. SADC is encouraged to liberalize its information and communications technology sector in order to fully benefit from financial inclusion initiatives. In addition, SADC should consider embracing international financial monitoring standards so that it does not fall behind the inevitable integration of the financial sectors.

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Estimating the Impact of Human Capital Underutilization on the Productivity and Economic Growth in India

10.21203/rs.3.rs-914304/v1 ◽

2021 ◽

Author(s):

Vijaya Kumar M ◽

Balu B

Keyword(s):

Economic Growth ◽

Human Capital ◽

Time Series Data ◽

Negative Relationship ◽

Series Data ◽

International Labor Organization ◽

Distributed Lag ◽

Integration Test ◽

The Impact ◽

Adf Test

Abstract This study investigated the effect of human capital underutilization on productivity and economic growth. It has used time-series data accessed from the International Labor Organization (ILO) and World Bank database. This paper estimated the relationship between the underutilization of human capital on productivity and economic growth by applying the econometric tests like Augmented Dickey-Fuller (ADF) Test, Johansen Integration Test, and the Autoregressive Distributed Lag (ARDL) model. The results revealed that in the long run human capital underutilization has a negative relationship on GDP and labor productivity and it does not in the short run. The study recommends that specific policy legislations in the Indian labor markets are required for addressing the problem of human capital underutilization and thereby accelerating the economic growth and productivity for the current and future generations.

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An Econometric Investigation of Sectoral Output and Environmental Degradation in Pakistan

Review of Education, Administration & LAW ◽

10.47067/real.v3i3.90 ◽

2020 ◽

Vol 3 (3) ◽

pp. 443-456

Author(s):

Furrukh Bashir ◽

Imran Sharif Chaudhry ◽

Rashid Ahmad ◽

Fiza Habib

Keyword(s):

Environmental Degradation ◽

Carbon Dioxide Emission ◽

Industrial Sector ◽

Agriculture Sector ◽

Distributed Lag ◽

Distributed Lag Model ◽

Sectoral Output ◽

Agriculture Industry ◽

Augmented Dickey Fuller ◽

Lag Model

This study examines effect of sectoral output (agriculture, industry and services) on environmental degradation in Pakistan ranging from period 1972 to 2017. This study makes use of Augmented Dickey Fuller test (ADF) followed by Autoregressive distributed lag model (ARDL). The empirical results show that Co2 emission in Pakistan is increased by Industrial sector output, population and energy consumption while agriculture sector output, services sector output and exports are reducing carbon dioxide emission.

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Transformasi Struktural di Jawa Timur : Pengaruh Pertumbuhan Ekonomi Sektoral terhadap Kemiskinan

Media Trend ◽

10.21107/mediatrend.v15i2.6789 ◽

2020 ◽

Vol 15 (2) ◽

pp. 275-282

Author(s):

Abdul Khafidzin ◽

Nurul Istifadah

Keyword(s):

Economic Growth ◽

Service Sector ◽

Agricultural Sector ◽

Industrial Sector ◽

Economic Sectors ◽

Equitable Distribution ◽

Agriculture Sector ◽

Agriculture Industry ◽

Selection Of Variables ◽

Distribution Of Income

Sectoral economic growth affects the level of poverty in the area. High economic growth does not merely reduce poverty. Equitable distribution of income is also a matter that needs to be considered in line with increased economic growth. High economic growth is the process of accumulation of sectoral economic growth that has undergone a structural shift in its journey. Changes in economic structure are marked by a decrease in the contribution of the agricultural sector and an increase in the contribution of the industrial sector, both in gross domestic product (GDP) and in employment. Economic growth needs to be directed towards economic sectors that are effective in reducing poverty and creating equitable distribution of income. The purpose of this study is to answer the question of how the influence of sectoral economic growth on poverty in East Java. For this purpose the panel data regression model is used. The selection of variables is based on research objectives. Agriculture sector GRDP (VP), industrial sector GRDP (VI) and service sector GRDP (VJ) represent sectoral economic growth. The results of the test show an increase in the contribution of the industrial sector effectively reduces poverty. In other words, between the agriculture, industry and services sectors, only the industrial sector has positive and significant parameters for poverty in East Java.

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Sectoral growth linkages of agricultural sector: Implications for food security in Pakistan

Agricultural Economics (Zemědělská ekonomika) ◽

10.17221/314/2017-agricecon ◽

2019 ◽

Vol 65 (No. 6) ◽

pp. 278-288 ◽

Cited By ~ 1

Author(s):

Hafiz Asim ◽

Muhammad Akbar

Keyword(s):

Agricultural Sector ◽

Negative Impact ◽

Industrial Sector ◽

Agricultural Output ◽

Services Sector ◽

Agriculture Sector ◽

Long Run ◽

Sectoral Growth ◽

Short Run ◽

The Impact

Does the growth in non-agricultural sectors spill over to the agricultural sector of an economy? There is limited evidence available on the issue for the developing world, especially for Pakistan which has undergone large structural changes since its independence. This study examined the impact of sectoral growth linkages on agricultural output of Pakistan for the period of 1960–2016. We have estimated an econometric model which incorporates inter-sectoral linkages of Pakistan economy using a Vector Error Correction Model (VECM). Our analysis revealed that the economy of Pakistan has shifted from an agricultural dominant economy to services-based economy during the past six decades. Results of VECM show that the industrial sector has a negative impact on the performance of agricultural output whereas services sector is influencing the output of agriculture sector positively in the long run. Short run results show that industrial sector is affecting the performance of agricultural output positively whereas services sector is influencing the output of agriculture sector negatively. Negative impacts of industry in the long run and services in the short run imply that agricultural sector should be given its due share in public investment and the role of middle man should be minimised at the time of sale of agricultural production in the markets.

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An Examination of the Impact of Power Sector Reform on Manufacturing and Services Sector in Nigeria: an Empirical Analysis

International Journal of Advances in Applied Sciences ◽

10.11591/ijaas.v7.i2.pp117-126 ◽

2018 ◽

Vol 7 (2) ◽

pp. 117

Author(s):

Emmanuel Ameh Ojiya ◽

Ngwu Jerome Chukwuemeka ◽

B.A. Daneji ◽

George Duhu Isiwu

Keyword(s):

Economic Growth ◽

Time Series Data ◽

Negative Relationship ◽

Series Data ◽

Power Sector ◽

Political Class ◽

Sector Reform ◽

Services Sector ◽

Long Run ◽

The Impact

The main objective of this study is to empirically examine the impact of Power Sector Reform on Manufacturing and Services Sector in Nigeria between 1999-2016. The study employed secondary annual time series data sourced from World Bank database (2016). The methodology adopted for the study was Augmented Dickey-Fuller (ADF); a test for long-run relationship using ARDL Bounds Testing approach with analysis of long-run and short-run dynamics in the model. A striking revelation from the study is the inverse relationship that exists between manufacturing output and electricity consumption in Nigeria within the period referenced. This negative relationship is not unconnected with widespread allegation of misappropriation of budgeted funds for the Power Sector by successive administrations in Nigeria since 1999. It must be stated in clear terms that constant and consistent electricity generation, transmission and distribution is sine-qua-none for the growth of the national economy. Virtually all sectors of the economy depend on the supply of electricity to do business and so the lack of this vital ingredient of growth contributes in no small measure in stagnating economic growth and development. Efforts at reforming the power sector can only be fruitful when ALL stakeholders in the power sector including the political class put away their personal agendas and take the bull by the horn towards rescuing the nation from the looming danger of stagnant economic growth. Furthermore, there is the need for the Nigerian government to come up with new, better and alternative ways of improving energy generation and supply, as well as proper maintenance of electricity infrastructure in the country.

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