Abstract
This article examines the strength of relationship between human capital and production at aggregate and sectoral levels. The study uses an annual data set from 1981 to 2014 taken from Pakistan Bureau of Statistics. The study used aggregate and sector-wise production models and applied augmented Dickey–Fuller (ADF) test to check the order of integration and JJ co-integration. Dynamic ordinary least square (DOLS) and fully modified ordinary least square (FMOLS) tests are used to check the consistency of initial findings and the sensitivity analysis is performed in order to check the robustness of results. The study illuminates the impact of human capital on the production of agriculture, industrial and services sectors, and compares the strength of this relationship with the coefficients obtained through aggregate data. The study found evidence of positive human capital contribution in aggregate and sectoral productions; however, its magnitude is found to be similar in the agricultural and industrial sectors which was higher than the magnitude associated with the services sector.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
