The Role of Human Capital in Economic Growth: A Comparative Study of Pakistan and India

Qaisar Abbas

Abstract


Economic Growth has posed an intellectual challenge ever since
the beginning of systematic economic analysis. Adam Smith claimed that
growth was related to division of labour, but he did not link them in a
clear way. After that Thomas Malthus developed a formal model of a
dynamic economic growth process in which each country converge toward
stationary per capita income. According to this model, death rates fall
and fertility rises when income exceed the equilibrium, and opposite
occur when incomes are less than that level. Despite the influence of
the Malthusian model in nineteenth century economists, fertility feel
rather than rose as income grew during the past 150 years in the west
and other parts of the world. The Neoclassical growth model of Solow
(1956), which has been for the past thirty years the central framework
to account for economic growth, focuses on exogenous technical
population factors that determine output-input ratios, responded to the
failure of Malthusian model.

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DOI: https://doi.org/10.30541/v39i4IIpp.451-473

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