Impact of human capital on economic growth: A case study of Pakistan

Abstract

A country is prosperous if it has efficient development programs. Human capital contains resources like education, health, training, skills etc. For economic progress these qualities are very vital. Basic objective of this research is to explain the impact of human capital on growth and development of economics sector of the Pakistan. Because today in the developing countries, human development and growth has becomes the burning issues. To analyse the association between human capital and economic growth, used GDP as a dependent variable. This study further use Human development index as independent variable. Proxy of human development index consist of education index, health, fertility, infant mortality, life expectancy and sanitation. Our focus will be more on the education. Time series data for the years 1990-2019 were used. ARDL model was used by incorporating the human capital formation with other explanatory variables. The findings shows that the human capital has positive and significant impact on growth and the negative influence on the population and infant mortality rate.