Poverty, Capital Formation, and Education: A Way towards Economic Growth Acceleration in Pakistan
Keywords:
Poverty, Education, Capital formation, Remittance, inflation, population growth, PakistanAbstract
Poverty has been recognized as one of the major hindrances in the path of economic development and growth. On the other side, the stimulating role of education in this regard has also been enlightened by the researchers. Therefore, this paper tries to integrate the impact of poverty, capital formation, and education on economic growth acceleration in the case of Pakistan. Besides, the role of human capital accumulation, financial instability, and remittance has also been integrated. This research occupies time series data from the period 1987 to 2021. Data set for all examined variables have been collected from an online portal World development indicator. For statistical examination, the gross domestic product has been utilized as the explained variable, while the Gini coefficient, education, remittance, financial instability, human capital accumulation, and capital formation has been integrated as the independent variables of this study. Here, the Autoregressive-distributed-lagged modeling approach has been finalized, after unit root test examination. Results disclosed that increased education significantly provokes high economic growth. On the other side, an increased poverty level may incur a static decline in the economic growth rate of Pakistan. A rise in population growth will statically slow down the economic growth in Pakistan. Based on the above estimation, the researcher suggested promoting financial stability along with quality education is needed which in turn accelerates human capital accumulation and stimulates high economic growth in Pakistan and also asserts to combat policies for poverty removal.
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Copyright (c) 2023 Dr. Hina Ali, Khizra Sardar, Nazia Latif
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Archives of Educational Studies (ARES), published by Department of Educational Studies, University of Okara, Pakistan is licensed under a Creative Commons Attribution 4.0 International License.
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