RELATIONSHIP BETWEEN SCHOOL EDUCATION AND ECONOMIC GROWTH IN PAKISTAN ARDL Bounds Testing Approach to Cointegration‪.‬

Byline: MUHAMMAD AFZAL, MUHAMMAD SHAHID FAROOQ HAFIZ KHALIL AHMAD, ISHRAT BEGUM and M. ABDUL QUDDUS* Abstract. The present study is designed to investigate short-run and long-run linkage between school education and economic growth in Pakistan using annual time series data on real GDP, real physical capital, inflation and general school enrollment for the period 1970 -71 to 2008-09. Cointegration between school education and economic growth is found in the present study. The results of this study also confirm the existence of direct relationship between school education and economic growth in Pakistan, both in the short-run and the long-run. Macroeconomic instability due to inflation retards economic growth both in the short-run and the long-run while it retards school education only in the long-run. A statistical significant and inverse relationship between school education and economic growth is observed only in the short-run.