A Quantitative Analysis of the Role of Human Resource Development in Economic Growth in Pakistan

Type Journal Article - International Journal of Management Sciences and Business Research
Title A Quantitative Analysis of the Role of Human Resource Development in Economic Growth in Pakistan
Volume 1
Issue 2
Publication (Day/Month/Year) 2012
URL https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2038001
The research paper seeks to find out the role of Human Resource Development (HRD) on Economic Growth of Pakistan. This
paper has a quantitative analysis approach. The variables considered indices for Human Resource Development are government
expenditures on education and health, primary education enrolment rate, secondary education enrolment rate, tertiary education
enrolment rate and gross domestic product. The tool for analysis is the Multiple Regression analysis model particularly on the
basis of perceived functional relationship between human resource development and economic growth in Pakistan. Here Gross
Domestic Product (GDP) is treating as the explained variable and the others as the explanatory variables; a multiple regression
model was specified to form a link between the two variable sets. The data used for study are secondary sources, the model was
estimated via ordinary least squares (OLS) techniques, and estimated based on relevant data from the regression output. The
result shows that only secondary and tertiary education enrolment rates make use of statistically significant effect on economic
growth in Pakistan. The others exerted positive but insignificant effect on economic growth. However, the explanatory variables
jointly exerted significant effect on growth. In addition, the model exhibited high explanatory power and indicated absence of
first order serial correlation in the explanatory variables. Based on the findings, the study concluded that a clear-cut and obvious
relationship existed between Human Resource Development (HRD) and Economic Growth and thus, recommended for
strengthen effort in Human Resource Development in Pakistan such as adoption of planned strategies in education and health
sectors and increased budgetary allocation to these sectors.

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