IMPACT OF BRAIN DRAIN ON ECONOMIC GROWTH OF PAKISTAN

Abstract

This study aims to find out how Pakistan's economic growth is affected by brain drain. It has used time series data of 1990-2019 over a period of 30 years. In this study the dependent variable is GDP with health expenditure, human development index, population growth and net migration rate as independent variables. The long- and short-term relationships between the variables are ascertained using the autoregressive distributed lag error correction model. ADF unit root test exhibit that the variables are stationary or not. The empirical results found that in the long run there is positive impact of HDI, health expenditures, and population expenditures on economic growth while net migration rate is having negative impact on economic growth of Pakistan. In the short run health expenditure has negative impact on economic growth while net migration rate, HDI and population growth positively affect economic growth of Pakistan.