Human Capital Formation in Bangladesh

Human Capital Formation and Economic Development in Bangladesh: A Time Series Analysis

Corresponding Author
Usman Qammar
M.Phil Scholar, National College of Business Administration and Economics (NCBA&E), 40-E/I, Gulberg-III, Lahore-54600, Pakistan.
Email: [e-mail]
Cell # 0092-03216525081

Human Capital Formation and Economic Development in Bangladesh: A Time Series Analysis
Abstract:
It is generally accepted in Economics that there is a great role of human capital formation in determining the national income. This is the basic need and the general priority need of any country to make policies for the human welfare and Economic Development of the country. The study uses the GDP as a dependent variable and Gross capital Formation, Secondary school Education and Labour Force Total as Independent variables. We use the 29 years data since 1980 to 2009. The data is collected from WDI. ARDL approach is used to check the long run co-integration between the variables. The Granger Causality test is use to check the causal relationship between the variables. The results of ARDL co-integration shows that there is no co-integration exist among the variables. Secondary School education does granger cause to the Gross capital formation. But the Gross capital formation does not granger cause to the Secondary school education. In this way, the results also shows that GDP does granger cause to the Secondary School education but Secondary school education does not Granger cause to the GDP. The results also shows that Secondary school education also does Granger Cause to the Labour Force Total but the labour force total does not Granger cause to the Secondary School Education.
Keywords: Human capital formations, physical capital, Secondary school education, labour force total.

1. Introduction:
It is generally accepted in Economics that there is a great role of human capital formation in determining the national income. This is the basic

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