Relationship between Education and Economic Growth in Pakistan: A time series analysis.

Abstract

Education is one very important factor of human capital formation. The objective of this paper is to examine the long-run relation between education expenditures and economic growth in Pakistan. Time series data is used for the period 1980-2009 for analysis and co-integration and error correction models are used to determine the long and short rum relationship of education and economic growth. In this study an attempt is made to determine and analyze the educational trends policy, trends of education, and challenges and it role in economic development in Pakistan. The study also presents some policy measures for education sector for human capital formation and escalates economic growth in Pakistan.