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Higher education and growth performance of Pakistan: evidence from multivariate framework

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Abstract

This study investigates the relationship between higher education and economic growth in Pakistan by using the annual time series data from the period of 1980–2011. The ARDL bound testing cointegration approach confirms the valid positive relationship between higher education development and economic growth in long run as well as in short run. Results of Granger causality test, Toda and Yamamoto Modified Wald causality test and variance decomposition test confirm the bidirectional causal relationship between higher education and economic growth in Pakistan. Results of rolling window estimations suggest that the contribution of higher education in economic growth is significantly increased after the formation of higher education commission of Pakistan in 2002. It is clear from our findings that higher education commission plays an important role in the development of higher education in Pakistan which leads to enhance economic growth. It is recommended that policy makers should make policies to strengthen the higher education commission to ensure continuous and rapid economic growth in Pakistan.

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Notes

  1. Social Policy and Development in Pakistan (2003).

  2. See, Kohpaiboon (2003), Jawaid and Waheed (2011), Jawaid and Raza (2012).

  3. See, Balasubramanyam et al. (1996), Barro (1999) and Kohpaiboon (2003).

  4. See, Dicky and Fuller (1979).

  5. See, Phillips and Perron (1988).

  6. Pesaran and Shin (1999).

  7. Haug (2002).

  8. Pesaran and Shin (1999) and Pesaran et al. (2001).

  9. See, Granger (1969).

  10. See, Toda and Yamamoto (1995).

  11. The variance decomposition method is estimated through VAR framework, it shows the proportion contribution in one variable caused by the shocks in other variables, Pesaran and Shin (1998).

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Authors and Affiliations

  1. IQRA University, Karachi, 75300, Pakistan

    Wasim Qazi, Syed Ali Raza & Syed Tehseen Jawaid

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  1. Wasim Qazi
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  2. Syed Ali Raza
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  3. Syed Tehseen Jawaid
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Correspondence to Syed Ali Raza.

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Qazi, W., Raza, S.A. & Jawaid, S.T. Higher education and growth performance of Pakistan: evidence from multivariate framework. Qual Quant 48, 1651–1665 (2014). https://doi.org/10.1007/s11135-013-9866-9

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