Factors Affecting Human Capital in Southern Punjab: An Empirical Analysis

Authors

  • Salyha Zulfiqar Ali Shah Assistant Professor, School of Economics Bahauddin Zakariya University Multan, Pakistan
  • Imran Sharif Chaudhry Dean of Arts & Social Sciences / Director, School of Economics, Bahauddin Zakariya University Multan, Pakistan
  • Fatima Farooq Associate Professor, School of Economics, Bahauddin Zakariya University, Multan, Pakistan

DOI:

https://doi.org/10.47067/real.v4i1.125

Keywords:

Human Capital, Southern Punjab, Education, Health

Abstract

Analyzing the factors affecting human capital at household level increases the productivity of people living in developing countries. A primary data was collected through a household survey to study the factors affecting human capital in Southern Punjab using Ordinary Least Squares (OLS) regression technique. The findings show that the location of the household in rural areas, occupation of the household head in the primary sector, household size, household poverty and female/male ratio shows significant and negatively affecting the human capital of the households in Southern Punjab. Moreover, per capita income, number of earners in the household, remittances are significant and positively affecting the human capital of the households in Southern Punjab. The annual budget allocation for education in Pakistan is very low, so Government should allocate a significant amount of funds to the education sector.

References

Ackah, C. (2013). Nonfarm Employment and Incomes in Rural Ghana. Journal of International Development, 25(3), 325-339.

Acharya, C. P. And R. Gonzalez (2014) How Do Migration and Remittances Affect Human Capital Investment? The Effects of Relaxing Information and Liquidity Constraints. The Journal of Development Studies 50:3, 444–460.

Ali, S., Chaudhry, I, S., & Farooq, F. (2012). Human Capital Formation and Economic Growth in Pakistan. Pakistan Journal of Social Sciences, 32, (1), 229-240.

Amin, A., Alam, D., & Iqbal, N. (2020). Analysis of Factors Influencing Household Human Capital Investment Behavior in Conflict Zones: A Case Study of District Swat. Review of Economics and Development Studies, 6(4), 881-891.

Aref, A. (2011). Perceived Impact of Education on Poverty Reduction in Rural Areas of Iran. Life Science Journal, 8(2), 498-501.

Attanasio, O., Meghir, C., Nix, E., & Salvati, F. (2017). Human Capital Growth and Poverty: Evidence from Ethiopia and Peru. Review of Economic Dynamics, 25, 234-259.

Atiq-ur-Rehman, M., Ghaffar, S., Shahzadi, K., & Ghazanfar, R. (2020). Human Capital Formation and Economic Growth in Emerging Asia: Empirical Evidence Using Panel Data. Review of Applied Management & Social Science, 3(2), 205-212.

Azam, M., & Raza, S. A. (2016). Do Workers' Remittances Boost Human Capital Development? The Pakistan Development Review, 123-149.

Bansak, C., & Chezum, B. (2009). How Do Remittances Affect Human Capital Formation of School-Age Boys and Girls? American Economic Review, 99(2), 145-48.

Becker, G. S. (1995). Human Capital and Poverty Alleviation. World Bank, Human Resources Development and Operations Policy.

Benhabib, J., & Mark M. Spiegel. (1994). The Role of Human Capital in Economic Development: Evidence from Aggregate Cross-Country Data. Journal of Monetary Economics, 34, 143-173.

Blanchard, E. J., & Olney, W. W. (2017). Globalization and Human Capital Investment: Export Composition Drives Educational Attainment. Journal of International Economics, 106, 165-183.

Chen, S., & Wang, Y. (2001). China's Growth and Poverty Reduction: Recent Trends Between 1990 And 1999. The Economist, 23.

Downey, D. B. (1995). When Bigger Is Not Better: Family Size, Parental Resources, And Children's Educational Performance? American Sociological Review, 746-761.

Handa, S., IMF, M. R. A., Stampini, M., & Winters, P. (2005). Agricultural Subsidies, Human Capital Development and Poverty Reduction: Evidence from Rural Mexico. Department of Public Policy, University of North Carolina, Unpublished.

Hines, A. L., & Simpson, N. B. (2019). Migration, Remittances and Human Capital Investment in Kenya. Economic Notes: Review of Banking, Finance and Monetary Economics, 48(3), E12142.

Jung, H. S., & Thorbecke, E. (2003). The Impact of Public Education Expenditure On Human Capital, Growth, And Poverty in Tanzania and Zambia: A General Equilibrium Approach. Journal of Policy Modeling, 25(8), 701-725.

Khan, R., & Chaudhry, I. S. (2019). Impact of human capital on employment and economic growth in developing countries. Review of Economics and Development Studies, 5(3), 487-496.

Knowles, S., & Owen, P. D. (1995). Health Capital and Cross-Country Variation in Income Per Capita in The Mankiw–Romer–Weil Model. Economics Letters, 48(1), 99–106.

Knowles, Stephen, Paula K. Lorgelly, And P. Dorian Owen (2002) "Are Educational Gender Gaps a Brake on Economic Development? Some Cross-Country Empirical Evidence", Oxford Economic Papers, 54(1): 118–149.

Lee, J. W., & Francisco, R. H. (2010). Human Capital Accumulation in Emerging Asia, 1970-2030. Asian Development Bank Economics Working Paper Series, (216).

Lee, J. W., & Lee, H. (2016). Human Capital in The Long Run. Journal of Development Economics, 122, 147-169.

Lucas R. (1988). On The Mechanics of Economic Development. Journal of Monetary Economics, 22, 3-42.

Mcfadden, D. (2008). Human Capital Accumulation and Depreciation. Review of Agricultural Economics, 30(3), 379-385.

Mincer, J. (1981). Human Capital and Economic Growth (No. W0803). National Bureau of Economic Research.

Mukherjee, S., & Benson, T. (2003). The Determinants of Poverty in Malawi, 1998. World Development, 31(2), 339-358.

Nguyen, H. M., & Nguyen, T. A. (2019). Investigating the Determinants of Household Welfare in The Central Highland, Vietnam. Cogent Economics & Finance, 7(1), 1684179.

Oketch, M, O. (2006). Determinants of Human Capital Formation and Economic Growth of African Countries. Economics of Education Review, 25, 554-564.

Olaniyan, D. A., & Okemakinde, T. (2008). Human Capital Theory: Implications for Educational Development. Pakistan Journal of Social Sciences, 5(5), 479-483.

Romer P. (1986). Increasing Returns and Long Run Growth. Journal of Political Economy, 94(2), 1002-1037.

Sumberg, J., Gilbert, E., & Blackie, M. (2004). Income Diversity, Technology Choice and Agricultural Research Policy in Sub?Saharan Africa. Development Policy Review, 22(2), 131-146.

Wang, Y., & Liu, S. (2016). Education, Human Capital and Economic Growth: Empirical Research On 55 Countries and Regions (1960-2009). Theoretical Economics Letters, 6(02), 347.

Warren, M. R., Thompson, J. P., & Saegert, S. (2001). The Role of Social Capital in Combating Poverty. Social Capital and Poor Communities, 3, 1-28.

Zhang, H. (2014). The Poverty Trap of Education: Education–Poverty Connections in Western China. International Journal of Educational Development, 38, 47-58.

Downloads

Published

2021-03-31

How to Cite

Shah, S. Z. A. ., Chaudhry, I. S. ., & Farooq, F. . (2021). Factors Affecting Human Capital in Southern Punjab: An Empirical Analysis. Review of Education, Administration & LAW, 4(1), 189-200. https://doi.org/10.47067/real.v4i1.125