Human capital and economic growth in Pakistan.
Khan, Mohsin S.
Abstract
Pakistan's economy has grown faster on average than many other
low- and middleincome countries over the past two decades. But several
countries in Southeast Asia have fared even better. This paper focuses
on factors that explain Pakistan's relative growth performance. In
addition to more traditional factors believed to determine growth, this
paper looks particularly at the role of differences in the quality of
human capital. The cross-country empirical results suggest that
accumulation of physical capital and improvements in the quality of
institutions have the largest pay-offs in terms of achieving higher
growth, but that better education and health care also have a
significant impact. Investment in these areas will increase the
possibility of Pakistan entering a virtuous cycle of high growth and
improved living conditions for the population.
Mohsin S. Khan (International Monetary Fund, Washington, D. C.)
