Nexus between Education, Industrialization, Unemployment, and Poverty: A Way Forward to Promote Sustainable Economic Growth in Pakistan

Abstract

The objective of this study is to focus on education, industrialization, unemployment, poverty, and Economic Growth and how these factors interlink with each other. The data has been taken from World Development Indicators and the Economic Survey of Pakistan. Unemployment in Pakistan has been classified in two ways urban and rural unemployment in Pakistan. Poverty is another major problem that resulted in a large number of people remaining in material deprivation due to low access to basic health and education. This study specifies that poverty is normally measured by using income, which is a flow variable while unemployment is a stock variable that records the position of the labor force at a point in time (Burn, 2002). However, unemployment is more observable in rural areas as compared to urban areas. The unit root test and autoregressive distributed lags technique bound testing have been used. The result shows that there is short-term and long-term cointegration among variables and have a statistically significant positive affiliation of the economic growth with the other variables of the study such as Industrial Growth and Gross Fixed Capital Formation.