Human Capital and Foreign Direct Investment: Lessons for Pakistan

Foreign direct investment plays a key role in economic development of all countries. Because of its enormous importance, a large number of empirical studies has focused on finding out the factors determining foreign direct investment. Level of human capital development is one of the major factors influencing foreign inflows. However, earlier studies examining impact of human capital on foreign investment inflows has majorly used literacy rate, school enrolment and government spending on education as its proxies. This paper also examines the impact of human capital as determinant of foreign direct investment. Contrary to earlier empirical studies, it uses cognitive skills as proxy for human capital. Cognitive skills measure the quality of education instead of literacy rate or government spending on education as proxy for human capital. Results indicate that human capital has significant positive effect on foreign direct investment for sample countries. This result is robust to disaggregated data for developed and developing countries. Other factors that determine foreign direct investment inflows are inflation, capital account openness, trade account openness and real income. Based on empirical results, it is recommended that the relevant authorities must make human capital as part and parcel of strategies aimed at augmenting economic growth in the country. There is also a lesson for a developing country like Pakistan to focus more on quality of education instead of school enrolment or education spending for attracting foreign direct investment to boost economic activity (J.E.L Classification Codes: O4, O15, P22).

Exploring the Causes of Lack of Community Involvement in One of the Public Sector Schools of Chilas, Diamer District, in Gilgit Baltistan

Community plays an important role for the improvement of education through its involvement in the schools. They support teachers to resolve their problems and encourage their children to get quality education. Community/parental involvement declare that when parents become committed and involved in the schools, academic achievement and school satisfaction increases. This study aimed to explore the causes of lack of community participation in the schools for the improvement of education to its children. This study was conducted in the Public Sector schools in the rural context of Chilas Diamer District of Gilgit-Baltistan. I applied qualitative paradigm using exploratory case study for this study. In order to know the causes of lack of community participation, one Head teacher, SMC Chairman, Religious leader, one Parent, SMC member and one Teacher were selected as research participants. I used electronic device for data and each participant was interviewed which lasted more than 35 minutes. All interviews were conducted in comfortable zone and before recording they were given consent form for putting their signature. After that, all interviews were transcribed and some common themes were identified which were barrier to community involvement in the school for quality education to its children. The findings show that community of the area is illiterate and does not know its role in the school. Moreover, due to poor economic condition, lack of awareness, motivation, conflicts/confusion among teachers and community members, impact of culture, environmental problem, contextual problems and societal problems that influence lack of community participation in the schools for quality education for its children.