Document Type : Original Research


1 College of Economics And Management Huazhong Agricultural University of China

2 College of Plant Science and Technology, Huazhong Agricultural University, Wuhan China

3 Government Degree College, Madyan Swat, Pakistan

4 Allama Iqbal, Open University, Islamabad


The role of university education, a central part of most development strategies, has become controversial because expansion of PhD’s by the Higher Education Commissions (HEC) attainment has guaranteed improved economic conditions. HEC promoted the higher education by providing different indigenous and international scholarships, which ultimately improved the standard of living of the students and attainment of well reputed jobs in different institutions of Pakistan, leads to alleviate the poverty relatively. This paper reviews the role of education in promoting economic well-being focusing on the role of educational quality. Much evidence from developing countries suggests that education has strong influence in reducing poverty. The main purpose of this study was to examine the effects of some of the key macroeconomic variables on Pakistan’s economic growth during 1980-2007 taking four different education levels including students enrollment at the university level as a ratio to total employed labour force. It concludes that there is strong evidence that the cognitive skills of the population-rather than mere school attainment-are powerfully related to individual earnings, to the distribution of income, and to economic growth. University education does not play a significant role in poverty alleviation. The magnitude of change needed makes it clear that closing the economic gap with industrial countries will require major structural changes in schooling institutions.


Abbas, Qaiser and James Foreman-Peck, (2007), “Human Capital and Economic Growth: Pakistan, 1960-2003” Under NRPU Projects by Higher Education Commission of Pakistan
Barro, Robert J and Xavier Sala-i-Martin (1995). Economic Growth. New York: McGraw-Hill.
Bloom, D.E., M Hartley, and H Rosovsky (2006), op cit.
Jenkins, H (1995): “Education and Production in the United Kingdom.” Economics Discussion Paper No 101, Nuffield College, Oxford University.
Lin, T.C. (2004): “The Role of higher education in economic development: an empirical study of Taiwan case.” Journal of Asian Economics 15 (2): 355–371.
Meulemeester, Jean-Luc de and Denis Rochat (1995): “A causality analysis of the link between higher education and economic development.” Economics of Education Review (14) 4: 251–361.
Pasacharopoulos, N. and H Patrinos (2002): “Returns to Investment in Education: A Further Update.” World Bank Policy Research Working Paper 2881, September.
See TFHE (2000) op cit. and DE Bloom, M Hartley, and H Rosovsky (2006), op cit.
Wolff, E.N. and M Gittleman (1993): “The role of education in productivity convergence: does higher education matter?” In A Szirmai, B van Ark, and D Pilat (eds), Explaining Economic Growth. Amsterdam: North-Holland.