EMPIRICAL SCRUTINY OF DEMOGRAPHIC DIVIDEND OF ECONOMIC GROWTH: TIME SERIES EVIDENCE FROM PAKISTAN
RRSS 2012 No.2 - Romanian Review of Social Sciences
• Bilal Mehmood, Anam Khan, Arham Khan
Keywords:Labor Force, Demographic Dividend, Savings, Economic Growth, Fully Modified OLS, Labor-surplus economy
This study empirically examines the impact of demographic variables on economic growth in Pakistan. It is done by augmenting the work of Mushtaq (2006) and Hussain, Malik & Hayat (2009) by employing more sophisticated econometric technique on data for the period 1970-2009 to estimate long-runrelationship between the variables by applying Johansen cointegration technique. Estimation through Fully Modified Ordinary Least Squares (FMOLS) of cointegrating vector reveals the existence of demographic dividend in Pakistan. The findings of this paper highlight the importance of man power planning to benefit from the surge of working age population and to forge the existing youth into future productive human capital to sustain the demographic dividend. This can be done by formulating and implementing a wholesome man-power plan spanning from academia to industry, for benefitting from the abundant factor of a labor-surplus economy.