The Role of Human Capital Formation in Poverty Mitigation: A Co-integration Analysis from Pakistan
DOI:
https://doi.org/10.26710/reads.v2i2.130Keywords:
Health and Education, Human Capital, Poverty, ARDL, Co-integration, PakistanAbstract
The present study tries to explore the dynamic relationship between
human capital formation and poverty mitigation by adopting the course
of investment in education and health substances. For this sake, study
takes heath expenditure and infant mortality rate as health indicators
while status of education is captured with literacy rate and enrollment in
higher education. Time series data is employed ranges from 1973-2013.
The properties of time series data are inspected with the ADF test whilst
PP test is employed for the robustness of unit root results. Mixed order of
integration of data compels us to make use of ARDL technique for the
estimation. Similarly, one unit change in health expenditures lead to
reduce 0.251 units of poverty and one unit change in infant mortality
cause to reduce poverty by 0.04 units. In last, one unit increase in
literacy rate changes 1.03 units in poverty and one unit change in higher
education results in 0.003 unit’s change in poverty. The results of the
study leave us with a clear finale for an optimal policy formulation that,
Pakistan is in sturdy need of investment in health and education
substances for a noteworthy accumulation of human capital for a right
way poverty mitigation policy.
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