Relationship between Social and

Economic Development in Pakistan: A

District Wise Analysis

Waseemsaleem

SESSION 2010-2014

DEPARTMENT OF ECONOMICS

SCHOOL OF SOCIAL SCIENCES

BEACONHOUSE NATIONAL UNIVERSITY,

LAHORE.

RESEARCH THESIS

Relationship between Social and

economic development in Pakistan: A

District Wise Analysis

Submitted to the Department of Economics, School of Social Sciences

Beaconhouse National University, Lahore

in partial fulfillment of the requirements

for the award of the degree of

BS

in

Economics

Supervised By: Dr. Hafiz Ahmed Pasha

Department of Economics

School of Social Sciences

Beacon house National University,

Lahore.

Abstract

Social and economic development is the main purpose of the any economy. Pakistan is a

developing country where social and economic development is needed. Many studies had done

this work but in this study, we took the data on the basis of districts. We took the top districts of

Pakistan. Data is collected on the basis of HIES data. Data is quality assured. Descriptive

analysis and correlation analysis technique has been used in this study. Economic ranks, literacy

ranks, adult literacy rate and enrolment rate are the main independent variables and indicators

chosen for the analysis of social and economic development.

TABLE OF CONTENTS

Page No

--------------- Abstract3

CHAPTER 1 Introduction 5

--------------- Background 6

--------------- Objectives 8

CHAPTER 2 Literature Review 10

CHAPTER 3Data & Methodology 20

-------------- Data& Description 22

-------------- Specification of Model 22

CHAPTER 4Results& Discussion 24

--------------- PUNJAB 25

--------------- SINDH 26

--------------- KPK 27

--------------- Correlation Matrix of the Model29

CHAPTER 5Graphical Representation 31

--------------- PUNJAB 30

--------------- SINDH 31

--------------- KPK 32

CHAPTER 6Conclusion& Recommendation 35

-------------- Bibliography 39

CHAPTER: 1

INTRODUCTION

Introduction

What does socio-economic development mean? In order to understand this concept, let us begin

by defining development. Generally, development is defined as a state in which things are

improving. But it can also be defined in various contexts likesocial, political, biological, science

and technology, language and literature. In the socio-economic context, development stands for

advancement in standard of living through improved education, incomes, developmental skills

and employment. It is the process of economic and social transformation based on cultural and

environmental factors.

Economic development in a perfect world alludes to the maintained, thorough activities of

groups and policymakers that enhance the expectation for everyday comforts and economic

strength of a particular region. The meaning of economic development given by Professor

Michael Todaro is an increment in living conditions, change of the nationals respect toward

oneself needs, free and a nonpartisan culture. He suggested that the most exact system for

measuring economic development is the HDI (Human Development Index).HDI is a realistic

tool used to measure the state's economic development in social and economic extents. HDI

moreover considers the perusing capability rates & future which subsequently has an entire

impact on benefit and could incite economic development. Then again, economic development

can similarly be measured by considering the GDI (Sexual introduction Related Record).

Economic development can likewise be talked about as the quantitative and qualitative changes

in a current economy. economic development includes development of human capital, expanding

the education proportion, change in framework, development in wellbeing and security and

others regions that focuses on the upgrade of the far reaching welfare of the subjects. The terms

economic development and economic growth are utilized conversely yet there is a huge contrast

between the two. Economic development can be seen as a sub classification of economic

development. Economic development is an administration approach to build the economic, social

welfare and guaranteeing a stable the earth. Then again, economic development is the general

development in the nation's preparations and administrations.

Social development implies improvement of living standard of every last individual so that

government could accomplish the greatest capability of general society in administrations. The

achievement of society is interfaced to the success of each and every subject. Social development

means placing assets into people. It requires the withdrawal of the deterrents with the goal that

all subjects can head out to their fantasies with certainty and predominance. It is about declining

to recognize that people who live in destitution will reliably be poor. It is about helping people so

they can progress on their approach to autonomy. Learning must start right on time in life. By

placing assets into in front of calendar learning exercises, we can promise a more conspicuous

level of accomplishment amongst our inhabitants. Confirming that kid's get a fair starts in their

direction goes far to growing their thriving further not far off. A sensible, astonishing child mind

schema is furthermore needed for society to succeed. Right when people understand that their

adolescents are consistently overall assigned with, they may be more profitable in their

occupations. Exactly when administrations have extraordinary delegates their business is more

inclined to succeed. Right when associations succeed, the economic condition of a gathering

additionally adult. A guess today in incredible child examination activities can give many

individuals whole deal fiscal benefits for society.

In addition, a safe sensible spot to live is especially fundamental in helping people achieve

autonomy. It is the middle of family life; where families can live safely, help their children,

manufacture bunch associations and take care of developing social orders. Without a routine spot

to live, it is tricky to limit as a gainful piece of society. Diverse investments in people that help

the economic blast of the general public join youth undertakings and administrations, post-

discretionary teachings, work creation, progression of sound, dynamic living and protected and

secure gatherings. To decrease impoverishment we need to take a social advancement approach

and place assets into our family. By placing assets into people we can decrease destitution. We

need to go past taking a sight at government to find methodologies to make our most critical

holdings, our kinfolk. We need to confer commitment to gathering affiliations, associations,

universities and locale in the obligation of improving the success of all New Pakistani and

balancing and diminishing poverty.

The Economic development record is blended one for Pakistan for the duration of its life i.e.

presently more than a half century. Far from poor introductory enrichments and inauspicious

figure of disintegrating on economic front after its autonomy the development rate is reasonable

enough to counter the figures. The development rate till the date midpoints to five percent more

or less, all through the history in spite of different kinds of vacillations the nation has seen on

economic, political, geological fronts and so on. In 2004-05, it crushed each country in the

district with the exception of China with an inexact development rate of 8.6 %. (Zaidi, 2006)

Pakistan is as of now confronting economic and social issues. Economic success serves as a

spine for the general advancement of a country. One thing is normal in all created countries that

they are monetarily sound. Individuals get more think full and valuable when their consideration

redirects from day by day winning issues and stress of business for their supportability. They

concentrate on instruction, improvise human services and create innovations that make life much

simpler. Poor economic condition is the main driver of such a variety of issues that exist in a

general public.

Result is that all our critical commercial ventures that once served as an essential donor to the

national GDP have been shut down. Sugar, bond and shoe industry is on its ruin while material

industry is breathing its last. Outside speculators are not prepared to setup their organizations in

Pakistan. They have their own particular set of issues which incorporate frightful and extensive

strategy of getting licenses and work allows in Pakistan, force emergencies, terrorism and

declining fares. Multinational Companies are hesitant to open their work places and

establishments in Pakistan. (Zaidi, 2006)

Stock Exchanges additionally portray a genuine picture of economic meltdown. Instable political

framework, tyranny in its more regrettable structure and non-compelling majority rule

government seriously influence the rates of stocks recorded on the three stock trades of Pakistan.

Amid in the not so distant future, ordinarily Karachi Stock Exchange has plunged to its most

minimal point ever. Nearby and in addition remote speculators are reluctant of putting vast totals

of cash in stock trade in dread of acquiring startling misfortune. All through 2008, stock trade

showed denied execution. Circumstance was precarious to the point that administration needed

to stop the business amid last quarter of 2008; state recuperation of stocks is likewise disturbing.

Prior when stock exchange used to plunge, it would recoup in few days or weeks however now

impart costs take significant time to create benefits.

Pakistan has been defying a huge amount of social issues following its beginning in 1947.

Initially there were the issues of unlucky deficiency of stores, rebuilding of untouchables, poor

schema and extensive destitution of masses. Quaid-e-Azam endeavored his best to deal with

these issues and get the state mechanical assembly living up to expectations yet due to his sudden

passing, he couldn't execute these issues completely. Subsequent governments didn't give

cautious thought towards aftereffect of distinctive social issues and in this way they created with

the movement of time and became social debacles.

At present the severest issue that Pakistan is going up against is its precarious legitimateness

condition. Terrorism has transformed into a headache for alliance and an awful dream for open.

Government has been powerless in pulverizing terrorism despite protesting up security in

metropolitan urban groups. Open searches for answer to the question that what is their lack for

which they are constantly rebuked by the terrorists? People have been able to be numerical

figures, blasted in numbers here and there. There is terrorism all over, even bazars, mosques,

educational establishments, business districts, lodgings nothing is secured any more.

Lack of awareness is yet an alternate issue of Pakistan. The perusing capability rate attends to

56% and unexpectedly it moreover joins those people who can read and make their name in

Urdu. As the decades progressed, regardless of decreasing, obliviousness rate in Pakistan has

showed an upward example. Activation level of substitutes at vital level has exhibited a

lessening example. The way that 50 percent of children don't complete their fundamental

direction asserts this. Uneducated adults help insignificantly to the national exchequer. Despite

utilizing millions on it, government has fail to fulfill composing capability rates commensurate to

distinctive countries in South Asia. Private portion is doing good occupation for the headway of

informative society in Pakistan, yet its essential end of the line is money making. Schools and

colleges are opened as a business prospect and in this way expansive shares of them need

quality.

Obliteration or Violation is an alternate enormous social issue. According to latest report of

Transparency International, Pakistan has been situated at 42nd number among the most

deteriorate nations of the world. From authoritative staff to higher work spots and functionaries,

all are incorporated in degradation of one kind or the other. Mortification in government work

places is so much significant built that a run of the mill thought wins that the schema doesn't let

authentic people to work delicately. There is an unlucky deficiency of obligation due to which

fortunate people and those in power are sure that they can't be considered accountable for their

deeds. So they keep looting the national fortunes and find methodologies to approval their dark

cash. Various improper people don't fundamentally attempt to do that.

Unemployment is moreover seen as a huge social issue. Huge offer of Pakistan's masses includes

youth and a broad number of young people who have the ability and are prepared to work are

unemployed. Quickly rate of unemployment as indicated by power possessions is 7.4% however

as shown by some private measures the rate of unemployment is 12%.

Problem Statement

In this study, the data set is been taken in the form of districts rather than provinces. This study is

checking the social and economic development in the different districts of Pakistan.

CHAPTER: 2

LITERATURE-

-REVIEW

Literature Review

The statement "Development" is a method in which something passes by degrees to diverse

stages solely more dynamic and created stage. The development is the demonstration of seeking

after economic development and social progression in ways that can be upheld for the long haul

by keeping up assets and ensuring nature's turf. The development is ideal and dependable

advancement in all segments, for example, economic, political, social, money related, instructive

and mechanical. It is specifically identified with expansion in the GDP and better expectation for

everyday life. The development of a nation is measured with factual lists, for example, for every

capita wage (for every individual) (GDP), future, the rate of education, and so on. The UN has

created the HDI (Human Development Index), a compound marker of the above detail, to gage

the level of human development for nations where information is accessible.

Social development is about upgrading the thriving of every individual in the general population

enclosure so they can fulfill their greatest limit. The accomplishment of society is interfaced to

the thriving of each and every inhabitant. Social development means placing assets into people.

It requires the evacuation of obstructions so that all occupants can accomplish their fantasies

with certainty and regard. It is important to assist the people with the goal that they can drive

ahead towards their approach to freedom.

Economic development is the kept up, intentional exercises of methodology makers and

gatherings that push the desire for ordinary solaces and economic wellbeing of a specific extent.

Economic development can also be insinuated as the quantitative and qualitative changes in the

economy. Such exercises can incorporate different reaches including development of human

capital, essential base, regional forcefulness, environmental supportability, social consolidation,

wellbeing, security, perusing capability, and diverse exercises. Economic development contrasts

from economic development. While economic development is a procedure intervention endeavor

with purposes of economic and social success of people, economic development is a wonder of

business part profit and move in GDP. Hence, as economist AmartyaSen points out: "economic

development is one piece of the methodology of economic development".

Ghauset al. (1996)focused on the social development positioning of areas of Pakistan. The paper

has used eleven markers relating to the preparation, wellbeing and water supply portions to rank

area of Pakistan the extent that the level of social headway. It is like manner examines to clear up

nearby mixture in the change of social base over cross sectional zones. The paper displays the

criticalness of preparing pointers in choosing the general level of social progression, especially in

regards to female training and enrolment rates. Similarly, the situating demonstrates an adjacent

association between levels of social and economic change spatially with Pakistan. Other

principal determinants of regional mixed bags in the level of social headway fuse the level of

urbanization, the administrative change of the district (territory of normal headquarters), and the

topographical/money related vitality (demonstrated by the region of the sea port). All things

considered, Punjab appears to have the biggest measure of social progression imitated by NWFP,

Sindh and Balochistan. Regardless, the results show huge mixed bag among districts inside a

territory in the level of social headway. Smallest made ranges inside every district are perceived

as centers for remarkable headway assignments inside SAP.

Ranis et al. (2000)talked about the effects of economic development and human development.

The associations between economic development (EG) and human development (HD) structure

two chains. Cross-country relapses demonstrate a noteworthy relationship in both bearings, with

open consumptions on wellbeing and training, eminently female, particularly essential in the

anchor from EG to HD; and the speculation rate and pay appropriation huge in the HD to EG

chain. This offers ascent to ethical or awful cycles, with great or terrible execution on HD and

EG reinforcing one another. Prove about whether have solid sequencing ramifications: nations at

first supporting economic development slip into the awful class, while those with great HD and

poor EG now and again move into the upright classification. Where decision is important human

development ought to be given sequencing need.

PalolVanin (2002) has discovered the relationship between economic development and social

development and created an evolutionary model of development in which operators pick how to

allot their time in the middle of private and social exercises. Partaking to the recent ones obliges

time and swearing off some private utilization; their utility depends both on own and on total

interest, and additionally on the open doors accessible in the nature's turf. Operators may

safeguard themselves from a poor social environment by moving to private exercises, less

presented to outer effects. In the event that this technique spreads over, private exercises will be

cultivated, however at the cost of social exercises. Since both effects aggregate about whether,

the result may be a joint event of economic development and social neediness. A conceivable

option result is that of a lot of time used in social exercises, which achieves a rich nature (i.e.

development in the social open doors accessible to the people), yet may go about as an

obstruction to private development. At the point when both these results are conceivable, the

present schema demonstrates that the recent is Pareto-better than the previous one (a conceivable

bring about exceptional social orders). The dissection has presented a specific number of creative

gimmicks, which require a deeper examination in future. The present model may be expanded

first of all by considering the likelihood of an adjusted development in the middle of private and

social exercises. Two effects may be applicable starting here of perspective. On one side, social

capital expands benefit in the private division, also settled in the cited writing, and this renders

significantly more genuine the issues made by under-interest in social exercises (social neediness

traps), while, in the meantime, it permits an adjusted development when social support is

sufficiently high. On the other side, market exercises may themselves help make new relations,

along these lines rendering less genuine the issue of social destitution and, thus, permitting an

adjusted development even with a low social cooperation. Since the two effects are

counterbalancing.

Olsson et al.(2003)examined the criticalness of economic development. This article models the

move from a hunter–gatherer economy to agrarian creation, a critical occasion in history which

made conceivable the endogenous innovative advancement that at last prompted the Industrial

Revolution. Further it shows the proof which demonstrates that the geographic and introductory

biogeographic conditions pushed definitive impact on the area and timing of moves to idle

farming, to complex social association and, in the long run, to current mechanical creation. Proof

from a vast cross-segment of nations demonstrates that the impacts of geology and biogeography

on contemporary levels of economic development are astoundingly solid, and the come about

that appears differently in relation to a few late studies where the impact runs singularly through

organization

Gustav Ranis (2004)investigated the dissection of human development and economic

development. Late writing has separated Human Development, depicted as a conclusive

destination of the progression process, with economic development, delineated as an imperfect

substitute for more general welfare, or as techniques to updated human change. This open

consideration has developed the definitions and goals of change yet need to describe the basic

interrelations between Human Advancement (HD) and financial development implies Economic

Growth (EG). To the extent that more unmistakable open door and capabilities upgrade monetary

execution, human progression will have a crucial effect on development. Furthermore, to the

extent that stretched pay rates will fabricate the extent of choices and limits savored the

experience of by families and governments, monetary development will redesign human change.

This paper examines these associations and the two-way linkages are additionally included.

Izushi and Huggins (2004) investigated the empirical analysis of human capital development

and economic growth in European regions. Recent examination of the information based

economy attracts progressively thoughtfulness regarding the part that the creation and

administration of learning plays in economic improvement. Improvement of human capital, the

key system for learning creation and administration, turns into a focal issue for strategy

producers and experts at the local, and additionally national, level. The current load of human

and physical capital in those locales with an abnormal state of urban foundation does not prompt

a high rate of economic development. Our exact dissection exhibits that the rate of economic

development is dictated by the amassing of human and physical capital, not by level of their

current stocks. We discovered no noteworthy impacts of scale that would support those areas

with a bigger supply of human capital. The essential arrangement ramifications of our study is

that, keeping in mind the end goal to encourage economic development, instruction and

preparing need to supply human capital at a speedier pace than just renewing it as it vanishes

from the work market. Given the noteworthy effect of high-request human capital, (for example,

business R&D staff for our situation study) and in addition the inexorably quick pace of

innovative change that makes human capital old, a purposeful exertion needs to be made to

encourage its constant advancement.

Ranis and Stewart (2005)examined an element interface in the middle of economy and human

development. This paper experimentally confirms the significance of different connections in

each of two chains about whether which implies from economic development (EG) to human

development (HD), including EG itself, pay conveyance, the social consumption degree and

female instruction; from HD to EG, including HD itself, alongside the venture proportion. Our

most vital conclusion concerns sequencing about whether. EG, which is imperative information

into HD change, is itself not feasible without such change, either former or concurrent.

Consequently, customary strategy counsel, which contends that HD upgrades must hold up until

EG development makes it moderate.

Mehrotra and Peltonen (2005)split away at economic development and fiscal approach. This

paper analyzes the connection between financial development and monetary strategy. This study

presented a marker for Socio-Economic Development Index (SEDI) and explores its association

with distinctive financial variables, utilizing information for the attachment nations, in particular

Greece, Portugal, Spain and Ireland for 1980-1999. We find that a change in the net loaning

position of the administration, and additionally a fall in the level of open obligation, would be

advantageous for financial development in the medium term. Moreover, financial union is

discovered to be more pertinent for pushing financial development in the attachment nations than

in the other EU-15 Member States. Our results give backing to motivators to check using, for

example, the monetary criteria of the Maastricht Treaty or the Stability and Growth Pact.

Nunn (2008) used information from the 1860 U.S. Census to examine whether the data support

the inequality channel proposed by Engerman and Sokoloff. The study, based on OLS estimates,

found a strong positive relationship between slavery and inequality in the size of land holdings,

when looking across either states or counties. This finding is consistent with the notion that

slavery resulted in economic inequality. However, Nunn failed to find any evidence of an

empirical relationship between initial economic inequality and current income levels. Although

the counties and states with higher levels of land inequality in 1860 also have higher levels of

income inequality today, these states and counties do not have lower levels of income today. In

other words, there is no evidence of a relationship between historic inequality and current

economic underdevelopment as hypothesized by Engerman and Sokoloff. Instead, the data are

most consistent with slavery having had two unrelated consequences: It increased economic

inequality, which persists today, and it resulted in lower levels of economic development.

Nunn (2009) has investigated the importance of history for economic development. This article

provides a survey of a growing body of empiricalevidence that points toward the important long-

term effects thathistoric events can have on economic development. The most recentstudies,

using microlevel data and more sophisticated identificationtechniques, have moved beyond

testing whether historymatters and attempt to identify exactly why history matters. Themost

commonly examined channels include institutions, culture,knowledge and technology, and

movements between multiple equilibria. The article concludes with a discussion of the questions

thatremain and the direction of current research in the literature.

Maharajh (2010) had investigated the relationship between economic growth and human

development. Economic development is by and large accepted to enhance the personal

satisfaction of the all inclusive community. In Africa, in any case, development has not equalled

advancement. This paper looks to address the relationship in the middle of development and

improvement from the point of view of frameworks of advancement. The paper is organized into

twelve segments comprehensive of a presentation and conclusion. Instantly after the

presentation, the paper turns to depicting Demographics and Economic Growth. The third

segment is committed to the Institutions and Policies that underpin Science, Technology and

Innovation. In the fourth area we illuminate the part of Science, Technology and Innovation in

Development. In the fifth segment we give some data concerning the enhancement of African

economies. This permits us to then turn our thoughtfulness regarding Macro-Economic

Conditions and Policy. Emulating this area, we move regard for a talk on Economic Sectors and

Priorities before introducing the advancement the mainland has accomplished in looking for the

accomplishment of the Millennium Development Goals. In the ninth area we introduce a few

parts of Global Competitiveness, before addressing the concerns of Industrialisation and

Entrepreneurship. The eleventh segment addresses the difficulties of Regional coordination. The

last area closes by a reaffirmation of the dynamic motion of Joseph Schumpeter‟s innovative

obliteration molding structural change. It is contended that the incitement of innovative

advancement, change of human capacities and the advancement of schema conditions are key for

Africa‟s improvement. Whilst Systems of Innovation give a middle of the road level of

hierarchical order to shape strategy and focus methodology; it is fundamentally working together

with authentic, participative influence that a socially iron empowered evolutionary change offer

the landmass the chance to escape the horrible cycles of underdevelopment.

Fred Gault (2011) found the social impacts of the development of science, technology and

innovation indicators. This paper examines the social impacts of the development of science,

technology and innovation indicators. The approach deals separately with the development

process and with the use of the indicators that result. Underlying the discussion is an assumption

that indicators are a technology, a product, which governs behaviour, is modified by users

(outside of the producer community), and develops in response to user needs. Science and

technology indicators are considered separately from innovation indicators, and the importance

of language based on codified and tacit knowledge is emphasized. The knowledge is codified in

manuals, and the tacit knowledge is held in overlapping communities of practice that develop the

manuals, gather the data, produce the indicators and use them. Finally, there is a discussion of

how this process changes and renews itself.

Ali et al. (2012) found human capital formation and economic growth in Pakistan. This study

inspects the part of human capital creation in economic development in Pakistan by utilizing the

data for the time period of 1972-73 to 2010-11. The results inferred that instruction enlistment

(substitute for human capital), wellbeing and physical capital are critical to support the economic

development in Pakistan. Human capital, altered capital and utilized work power influence the

GDP and bring about unidirectional and non-unidirectional causality. In the wake of evaluating

the model, we presumed that instruction enlistment file, terrible altered capital development and

Gini coefficient have positive and huge effect on horrible residential item, while head check

degree, baby death rate, CPI swelling and venture development rate have negative and critical

effect on horrible household item in Pakistan.

Popa (2012) investigated the impact of social factors on economic growth: Empirical evidence

for Romania and European Union countries. This study breaks down the relationship between the

social variables and the economic development. An outline of social and economic environment

is displayed for Romania. Thusly, the paper breaks down the worldwide development of social

and economic environment about whether and builds an immediate connection between human

improvement and economic welfare. An econometric model and a bunching model are tried for

European Union nations. The aftereffects of the paper uncover the social variables that are

absolutely corresponded with the economic development (i.e. the normal years of educating and

the future) and, separately, the components that are contrarily connected with the economic

development (i.e. the populace at danger of neediness and the unemployment rate).

Spolaore and Wacziarg (2013)recognized the roots of economic development. The empirical

literature on economic growth and development has moved from the study of proximate

determinants to the analysis of ever deeper, more fundamental factors, rooted in long-term

history. A growing body of new empirical work focuses on the measurement and estimation of

the effects of historical variables on contemporary income by explicitly taking into account the

ancestral composition of current populations. The evidence suggests that economic development

is affected by traits that have been transmitted across generations over the very long run. This

article surveys this new literature and provides a framework to discuss different channels through

which intergenerational transmitted characteristics may impact economic development,

biologically (via genetic or epigenetic transmission) and culturally (via behavioral or symbolic

transmission). An important issue is whether historically transmitted traits have affected

development through their direct impact on productivity, or have operated indirectly as barriers

to the diffusion of productivityenhancinginnovations across populations

Samimiet al. examined the natural maintainable quality and economic development from some

creating nations. The explanation behind this paper is to gadget and assesses the relationship

between biological practical quality rundown and economic development in making countries.

Most studies consolidated Environmental Kuznets Curve (EKC) hypothesis as a methodology to

deal with the impact of hailing regular quality on economic development, to affirm a turned

around U twist. This paper Environmental Sustainability records (ESI) the record changes

between zero to hundred in such a way, to the point that a higher rundown intimates a

predominant Environmental Sustainability. This record which is opposite of the regular rot list

has been used and thusly expects a U-molded Kuznets Curve to support Kuznets hypothesis. Of

course, our revelations as to the assessed board backslideanalysation in the midst of 2001-2005

revoke the regular Kuznets Curve. In other word, we found a revised U twist regarding the

relationship between regular reasonable quality and economic development.

Gokhan Umut investigated the impact of human capital on economic growth througha panel

data analysis. There are so many economists who gave many theories,various economic growth

models due to their importance for the countries. The most famous model is Rostovian take-off

model, in other words Rostow’s Stages of Growth. In addition to these, neoclassical growth

theory was based on Solow’s growth theory which explains growth by technological

determinants as exogenous factors. In the 1980s, new growth models which were named

endogenous growth theory were developed by Robert Lucas and Paul Romer. According to this

model, human capital includes variables such as education and health which are also some

parts of economic growth. This paper demonstrates the relationship between human capital and

monetary development by utilizing board information investigation.Economic growth is

endogenous variable, whereasprimary school enrollment, secondary school enrollment, tertiary

school enrollment, public expenditure on education and health expenditure are exogenous

variables. The relation between human capital and economic growth between 1999 and 2008 will

be analyzed in 14 countries; seven developed countries and seven developing countries.

CHAPTER: 3

DATA

&

METHODOLOGY

Data and Methodology

1. Data Description

This research is associated with the relationship between social development and economic

development of Pakistan. To examine this relationship econometric tools have been used. The

sample of the study is primary. Primary data is collected to check the relationship between social

and economic development by using the district wise analysis. Data is collected from all the

provinces of Pakistan and distributed in different districts.

2. Specification of the Model

Four main factors are ranked in this study; Economic ranks, literacy ranks, enrolment rate

primary level and adult literacy rate. 15 districts have been taken from each of the province.

Descriptive analysis technique has been used in this study to analyze the relationship of all

variables with social and economic development of the district and then province. Quality data is

collected to get the best estimation results. When we regress district wise data, it becomes more

difficult to analyze the overall province data, because there comes the role of autocorrelation in

the data due to the double counting. So to get rid of this problem, we did not examine the overall

significance of data.

Punjab has many districts, but this study had taken only the top ranked districts. Sindh and KPK

also have many districts but only top ranked districts had taken for the analysis. Balochistan has

few districts, so all districts have been taken for the better analysis.

Rank Correlation matrix technique is also been used in this study. Province wise correlation is

calculated to check the relationship and interdependence among the variables.Two random

variables are positively correlated if high values of one are likely to be associated with high

values of the other. They are negatively correlated if high values of one are likely to be

associated with low values of the other. Correlation coefficient should be somewhere 0 to 1. If

the value is 1, then it means there exist perfect correlation among the variables and if the value is

0, it means there exists no correlation among variables. So variables should be interdependent

and correlated to some extent.

Rank correlation Formula given as follow

Results and discussion of the variables is given in the next step.

Data for Analysis

DISTRICTS ECONOMIC

RANKS

LITERACEY

RANKS

ENROLMENT

RATE

PRIMARY

LEVEL (5-9)

ADULT

LITERECEY

ABOVE 15

ISLAMABAD 25 1 5 1

ATTOCK 27 12 14 12

BHAKKAR 46 21 23 21

BHAWALNAGAR 51 26 27 26

BHAWALPUR 31 29 35 29

CHAKWAL 35 5 9 5

D.G KHAN 16 31 25 31

FAISLABAD 3 9 21 9

GUJRANWALA 23 7 15 7

GUJRAT 33 6 11 6

HAFIZABAD 40 22 13 22

JHANG 42 25 30 25

JHELUM 45 3 3 3

KASUR 9 24 22 24

KHANEWAL 18 45 19 23

KHUSHAB 28 16 10 16

LAHORE 2 4 12 4

LAYYAH 54 18 6 18

LODHRAN 59 34 32 34

MANDI BAHA UD DIN

47 11 16 11

MIANWALAI 24 13 18 13

MULTAN 12 17 28 17

MUZAFAR GARH 14 33 29 33

NAROWAL 61 20 1 20

OKARA 37 30 26 30

PAK PATTAN 53 28 24 28

R.Y KHAN 15 32 34 32

RAJAN PUR 43 35 33 35

RAWALPINDI 6 2 4 2

SAHIWAL 22 19 17 19

SARGODHA 44 15 7 15

SHEKHUPURA 5 14 20 14

SIALKOT 11 8 2 8

TOBA TEK SINGH 48 10 8 10

VEHARI 38 27 31 27

SINDH SINDH SINDH SINDH SINDH

BADIN 49 13 13 13

DADU 7 8 10 8

GHOTKI 17 11 4 11

HYDERABAD 10 4 5 4

JACCOBABAD 60 15 15 15

KARACHI(CENTER) 1 1 1 1

KHAIRPUR 55 7 6 7

LARKANA 63 10 12 10

MIRPURKHAS 34 12 9 12

NAUSHERO FEROZE

52 3 3 3

NAWAB SHAH 32 5 2 5

SANGHAR 20 6 8 6

SHIKARPUR 69 9 14 9

SUKKUR 26 2 7 2

THAR PAR KAR, THATHA

19 16 11 16

KPK KPK KPK KPK KPK

ABBOTABAD 62 1 1 1

BANNU 56 9 12 9

BATAGRAM 29 15 21 15

BUNAIR 66 23 16 23

CHARSADA 50 16 13 16

D.I.KHAN 57 22 18 22

HARIPUR 13 2 2 2

KOHAT 39 12 9 12

LAKKI MARWAT 64 17 10 17

LOWER DIR, MANSEHRA

68 3 6 10

MALA KAND(PA) 65 6 7 6

MARDAN 41 13 8 13

NAUSHEHRA 8 8 3 8

PESHAWAR 30 11 14 11

SWABI 21 14 11 14

SWAT 58 7 17 7

TANK, UPPER DIR 67 21 19 20

BALOCHISTAN BALOCHISTAN BALOCHISTAN BALOCHISTAN BALOCHISTAN

LASBELLA 4 13 18 13

PISHIN, QUETTA 36 1 16 1

CHAPTER 4

RESULT

&

DISCUSSION

Results and discussion

This part incorporates the results and examination of the study. The dialog of the results is

focused around the rankings.

Advancement is a procedure in which something passes by degrees to the distinctive stages

especially a more phenomenal or adult stage. The progression is the showing of looking for after

monetary development and social movement in ways that could be underpinned for the long term

by controlling possessions and strengthening nature. The change is perfect and solid movement

in all fragments for instance it is possible that its monetary or social furthermore grows the GDP

development rate and have better desires for commonplace comforts.

The advancement of a country is measured with authentic records, for instance, pay for each

capita (for each person) (GDP), future, the rate of instruction, etc. The UN has made the HDI

(Human Development Index), a compound pointer of the above realities, to gage the level of

human development for countries where data is open. While there is a robust relationship

between having a high HDI score and a prosperous economy, the UN (United Nations) raises

that the HDI speaks to more than compensation or profit. Not under any condition like GDP for

every capita or for every capita wage, has the HDI considered how wage is changed "into

guideline and wellbeing open entryways and therefore into bigger measures of human change.

Social change infers that all the general public can improve as far as political, social and

monetary structures. It additionally incorporates serene conditions, better living models and

incredible wellbeing of country. Where people have all the rights and honorability and everyone

is proportional as indicated by law. Social headway is the welfare of society so people can live

legitimately and have better choices to picked calling and employment.

Districts of Punjab

05

10152025303540

Districts of Punjab

Economic Ranks Literacy Ranks Enrolment Rate Adult Literacy Rate

Economic Ranking

This study has taken the top districts of Punjab. Ranking is showing that how much a district

needs social safety nets. More the ranking, less a district is getting social safety nets, less

developed.

Narowal is on the top of the list of the district in economic ranking. Rank of Narowal is 61

among the top 15 districts of Punjab. Then, the 2nd highest ranked district Lodhran, which has the

rank 59. This economic ranking is showing that the social and economic development of the

district. It is also showing that how district is getting the attention of Govt. and social safety nets

are being fulfilled by the Govt. These ranking are also showing that more a districts is developed,

less the ranking is. Layyah, Pak-pattan, Bahawalnagar, Toba teksingh, MandiBahaud din,

Bhakkar, Jhelam, Sargoda, RajanPur, Jhang, Hafizabad, Vehari, Okara and Chakwal. These are

the top districts which were taken for the analysis.

Literacy Ranks

Now this study is ranking the districts with their literacy rate. This tells that what the actual

literacy rate in the district is. Narowal was the top one in economic ranks but in literacy ranks its

rate is 20. This means that it is the least literate district. In the literacy ranking, Khanewal is on

the top of the list. The sample is very large, but here we are discussing only top 15 districts.

Khanewal, RajanPur, Lodhran, MuzafarGarh, RY Khan, Okara, Bhalwalpur, Pak pattan, Vehari,

Bhawalnagar, Jhang and Kasur are the main districts of the Punjab. These districts are written

ranking wise. Khanewal on the top and then all others and enrolment rate at primary level is

increasing with the passage of time.

Literacy rate above 15 years, is also being ranked and shown in this study. Literacy rate is very

much low in these districts. There are only few schools and colleges in these districts.

Districts of Sindh

02468

10121416

Districts of Sindh

economic ranks literacey ranks enrolment rate primary level adult literecey

0

5

10

15

20

Districts of KPK

economic ranks literacey ranks enrolment rate primary level adult literecey

Economic Ranking

Shikarpur’s economic rank is 15, which means this district has little economic and social

development. Karachi is least ranked district because it has good social safety nets. The names of

remaining districts are Larkana, Jaccobabad, Khairpur, NausheroFeroze, Badin, Mirpur, Nawab

shah, Sukkur, Sanghar, Thar-Par kar, Ghotki and Hyderabad. These districts are those which are

economically ranked and shown their social and economic development.

Literacy Ranks

Thatha has the highest literacy rate among the sample districts. This literacy rate is due to the

high adult literacy rate not because of primary enrolment rate.

Districts of KPK

Mansehra is on the top of the districts. Its rank is 17, which mean that is has little social and

safety nets. Tank, Bunir, Mala Kand, LakkiMarwat, Abbotabad, Swat, DI khan, Bannu,

Charsada, Mardan, Kohat, Peshawar, Batagram, Swabi and Haipur are the remaining districts

which were taken in the sample set. Social and economic development is very important for an

economy. These districts are also ranked as literacy ranks.

Rank -

-CORRELATION

MATRIXS

Correlation Matrix

Punjab’s Districts’ Correlation

Correlation is registered into what is known as the correlation coefficient, which extends

between -1 and +1. Immaculate positive correlation (a correlation co-effective of +1) infers that

as one security moves, either up or down, the other security will move in lockstep, in the same

bearing. On the other hand, flawless negative correlation implies that if one security moves in

either heading the security that is consummately contrarily related will move in the inverse

bearing. On the off chance that the correlation is 0, the developments of the securities are said to

have no correlation; they are totally arbitrary.

In the above table, all variables are correlated with Economic ranking. Economic ranking is 21 %

correlated with the literacy rate, economic ranks is 4 % correlated with enrolment rate, Adult

literacy rate is 24 % related with the economic ranks. Less the correlation, less will be the

interdependence. All variables are significant and have impacts on each other.

Sindh’s Districts’ Correlation

Correlations

ECO LIT EN ALR HTT WAT

CHIL

D

PWTT

I

Spearman's rho

ECO

Correlation

Coefficient

1.000 .321 .532 .321 .054 .432 .261 .093

Sig. (2-

tailed) . .243 .041 .243 .850 .108 .348 .742

N 15 15 15 15 15 15 15 15

Correlations

ECO LIT EN ALR HTT WAT

CHIL

D

PWTT

I

Spearman

's rho

EC

O

Correlation

Coefficient

1.000 .218 -.041 .248 .423 .180 -.149 -.026

Sig. (2-tailed)

. .209 .814 .151 .011 .302 .394 .881

N 35 35 35 35 35 35 35 35

In the above table, Economic ranking of districts Sindh is related with the all other variables like

literacy rank, enrolment rate, adult literacy rate, immunized children and Toxoid injection.

Economic ranking the 32 % correlated with the literacy rate. It shows that how much economic

ranking effect the literacy rate. All variables are positively related with the economic rank. If we

increase 1 unit of literacy rate, economic ranking will increase by 32%. Enrolment rate is

positively related with economic ranks by 53 %. Adult literacy rate is 32 % correlated with

economic ranks. Toxoid injection is 9 % correlated with economic ranks.

KPK’s districts’ Correlation

Correlations

ECO LIT EN ALR HTT WAT

CHIL

D

PWTT

I

Spearman's rho

ECO

Correlation

Coefficient

1.000 .137 .137 .218 .407 .203 -.145 .228

Sig. (2-

tailed) . .599 .599 .400 .105 .434 .580 .379

N 17 17 17 17 17 17 17 17

In the above table, Economic ranking of districts KPK is related with the all other variables like

literacy rank, enrolment rate, adult literacy rate, immunized children and Toxoid injection.

Economic ranking the 13 % correlated with the literacy rate. It shows that how much economic

ranking effect the literacy rate. All variables are positively related with the economic rank. If we

increase 1 unit of literacy rate, economic ranking will increase by 13%. Enrolment rate is

positively related with economic ranks by 13 %. Adult literacy rate is 21 % correlated with

economic ranks. Toxoid injection is 22 % correlated with economic ranks.

All the variables are positively related with economic ranking except immunized children age.

GRAPHICALLY

REPRESENTATION

OF

DISTRICT-wise

Graphically Representation

The Following graphs are showing the relationship of all ranked variables that are used in this

study. Economic ranks, Literacy ranks, Enrolment Rate, and Adult Literacy Rate are independent

variables and the districts are dependent variables. In some districts, economic ranks are greater

than any other variable, which means that there exists economic inequality in these districts.

Literacy rate tells the how much people are educated in this district. Enrolment rate also tells

about the awareness of people that enroll their children in the schools. If the enrolment rate is

high which means that more people are educated and high will be the literacy rate. If adult

literacy rate is high, then the district is also good in ranking.

Analysis of top 15 districts of Punjab had done in the above graph. In the context of economic

ranks, Narowal district is on the top of the list. While in the context of literacy ranks, RajanPur is

on the top of the list. Enrolment rate is also considered as a good indicator to measure the social

and economic rank of the district. Lodhran is on the top of the list in the context of enrolment

rate. Adult literacy rate is a remedial measure for the social and economic development.

RajanPur is the best district among all other districts, which has the top adult literacy rate.

0

5

10

15

20

25

30

35

40

Districts of Punjab

Economic Ranks Literacy Ranks Enrolment Rate Adult Literacy Rate

02468

1012141618

Districts of KPK

economic ranks literacey ranks enrolment rate primary level adult literecey

Analysis of top 15 districts of Sindh had done in the above graph. In the context of economic

ranks, Shikarpur district is on the top of the list. While in the context of literacy ranks,

Jaccobabad is on the top of the list. Enrolment rate is also considered as a good indicator to

measure the social and economic rank of the district. Jaccobabad is on the top of the list in the

context of enrolment rate. Adult literacy rate is a remedial measure for the social and economic

development. Thar Parkar is the best district among all other districts, which has the top adult

literacy rate. Karachi is the least district with according to the analysis of districts. Sukkur is

also not good in accordance with the analysis.

02468

10121416

Districts of Sindh

economic ranks literacey ranks enrolment rate primary level adult literecey

0

5

10

15

20

25

30

35

40

LASBELLA PISHIN, QUETTA

Districts of Balochistan

Economic Ranks Literacy Ranks Enrolment Rate Adult literacy Rate

Abbotabad is on the least in the context of all independent variables. Analysis of top 15 districts

of KPK had done in the above graph. In the context of economic ranks, Mansehra district is on

the top of the list. While in the context of literacy ranks, Bunir is on the top of the list. Enrolment

rate is also considered as a good indicator to measure the social and economic rank of the

district. Batagram is on the top of the list in the context of enrolment rate. Adult literacy rate is a

remedial measure for the social and economic development. Bunir is the best district among all

other districts, which has the top adult literacy rate.

Balochistan is the less developed province of Pakistan. Only two districts were ranked. Lasbella

and Pishin. Enrolment rate is high in Quetta and and literacy ranks is high in Lesbella.

CHAPTER 5

CONCLUSUIN

&

RECOMMENDATION

Conclusions and Recommendation

Pakistan's economic and social fabric is constantly openly rotting because of the crisis level

difficulties identified with training, wellbeing, agribusiness, nature's domain, and so forth. These

difficulties are seriously confining Pakistan's capacity to leave the chasm of neediness, craving,

obliviousness, backwardness, radicalism and peace weakening. Science and engineering can play

a urgent and successful part in dispensing with or decreasing the previously stated issues. The

fundamental innovations which can be helpful for the recognized financial difficulties, are

biotechnology, hydrology, mining-designing, electrical and electronic building, structural

building, restorative and concoction procedure building, option vitality advances,

nanotechnology and Icts. Result-situated connected innovative work is important for this reason.

Adjustment and osmosis of the aftereffects of officially demonstrated connected engineering, as

opposed to just fundamental exploration could end up being more gainful for Pakistan, under the

current circumstances.

Institutional limit building and human asset development for recognized ability development in

focused on fields of investment ought to be given need. Informative changes, for example,

wiping out class-framework in schools, advancing curricula with science educating at essential

and auxiliary school level, leaning toward English as the dialect of instructing, ought to be

received so that fit labor ought to be created to comprehend and apply science and innovation to

settle financial issues being confronted by Pakistan. Arranging, arrangements and methods for

applying science and engineering to illuminate distinguished financial issues of Pakistan ought to

be painstakingly made and all the pertinent stakeholders ought to be included in this procedure.

Solid accentuation ought to be laid on execution and assessment. Access of the normal man to

the proposed innovations for comprehending financial issues ought to be made simpler.

Debasement was recognized as the real impeding component for Pakistan's advancement.

Computerized stages like e-influence and e-administration out in the open and private-part ought

to be broadly connected.

The Administration of Pakistan ought to attempt genuine exertions to push college industry

linkages. Use of scholarly potential for modern development in the current time of globalization

and world aggressiveness is to the greatest advantage of Pakistan. Answers for the issues of

economic and social development are given beneath:

Access to Foreign Direct Investment (FDI)

Foreign Direct Investment refers to capital ventures into plants, apparatus and supplies by a

remote organization or a single person. FDI is paramount for the development of Caribbean

economies as they are tested by their high obligation to GDP proportions and expanded

worldwide rivalry for fare profit. Drawing in remote immediate venture is a path for Caribbean

nations to get capital for development and development. Work for nationals, expanded access to

worldwide markets, Presentation of cutting edge advances and procedures, and Change in human

asset aptitudes are a few profits of the FDI.

Development of human resource

Interest in human capital is basic for Caribbean economies to contend internationally. Enhancing

the estimation of human capital through training and preparing will build the beneficial limit of

Caribbean countries.

Development of manufacturing sector

The assembling area makes worth included items which expands send out income for Caribbean

economies. Creating the assembling segment in this way will effect on the potential economic

development of a nation. Innovative headway and Innovative work are the systems for creating

assembling part.

Policy Recommendations

An imperative need for constrained open stores for economic development ought to be to

empower nearby useful and preparing foundations to be more receptive to the planning needs of

little and medium estimated organizations in the range.

An alternate need should to be open backing for semi private data and preparing administrations

for little and medium estimated firms and start-up firms, helping them decide how to fare and

modernize, and assisting with administration issues. Firms ought to be charged a few expenses

for these administrations, with a specific end goal to extend restricted open subsidizes and give a

motivating force to great administration execution. Where conceivable, these administrations

should to look to work with gatherings of firms to help them participate to tackle some of their

issues. The nature of these administrations ought to be consistently assessed through studies of

business customers of these projects.

Open backing of business capital needs is best given by urging private economic foundations to

give sort of higher danger financing to little and medium estimated organizations. Government

can be a broker, yet the cap does not fit well.

Higher unemployment ranges might truly be intrigued by giving expense and other economic

subsidies for an assortment of economic development ventures. Such subsidies ought to be

centered around fare base firms, import-contending firms, or their suppliers, and on higher

compensation firms. Subsidies ought to be given forthright hook back procurements if certain

employment creation objectives are not met.

To the degree conceivable, nearby governments ought to stay away from ruinous rivalry for

business land ventures with other adjacent wards. In the event that attainable, economic

development deliberations ought to be composed over the whole neighborhood work market.

The center of neighborhood economic development exertions ought to be on balancing out the

nearby expense base and enhancing general work market opportunities for neighborhood

occupants.

Tied aid is likewise the best answer for take care of the issues of economic and social

development. This is help with conditions connected. Case in point, there may be a necessity to

purchase products from the contributor nation or the help may be given on the condition that

there are economic or political changes.

Human capital can take up a critical part in development. On the other hand, confirmation

proposes that interest in essential training in creating nations yields a higher return than different

types of instruction.

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