Faculty / School
Faculty of Business Administration (FBA)
Was this content written or created while at IBA?
Yes
Document Type
Book Chapter
Publication Date
2005
Book or Conference Proceedings Title
Education reform in Pakistan: building for the future
ISBN/ISSN
1933549041
Editor(s)
Robert M. Hathaway
First Page
33
Last Page
45
Publisher
Woodrow Wilson International Center
Place of Publication
Washington
Keywords
Economic development,Education,Employement, Pakistan
Abstract / Description
The “new growth theory” has been highly influential in explaining the differences in the economic performance of developing countries. Economic backwardness is highly linked to low labor efficiency and training, deficient supplies of entrepreneurship and slow growth in knowledge. The countries that have surged ahead, on the other hand, are characterized by high level of human capital accumulation where the educated labor force has raised the level of output and the rate of growth over a sustained period of time. Stern (2001) argues that education takes center stage in any discussion of development strategy for two reasons. First, the quantity and quality of education influences strongly the labor force, governance and the workings of most institutions. Thus it is a key determinant of the investment climate. Firms, both domestic and foreign, are more eager to invest when they know that they will be able to draw on a skilled workforce to make that investment productive. Second, universal access to basic education is essential for ensuring that all segments of society will benefit from macroeconomic growth. Studies confirm that the productivity benefits of education are large— just one additional year of education can increase productivity in wage employment by 10 percent even after controlling for other factors. Skill development through education has been identified as a key determinant of comparative advantage and manufacturing export performance. In Pakistan, it has been shown that districts with a higher literacy level have a higher level of development (SPDC 2003).
Recommended Citation
Husain, D. (2005). Education, employment and economic development in Pakistan. Education reform in Pakistan: building for the future, 33-45. Retrieved from https://ir.iba.edu.pk/faculty-research-series/143