Narratives of Human Capital for Sustainable Economic Growth: Empirical Evidence from Pakistan

Abstract

This study endeavors to estimate the association between human capital formation on the economic development of Pakistan. The human capital was further divided into two components; i.e. health and education. The study utilized the annual time series data for 1974-2019 and utilized ADF (Augmented Dickey-Fuller) to test for unit root. The study employs the ARDL (autoregressive and distributed lag) technique to find the short-run and long-run relation between human capital and economic growth.The study concluded population growth has a direct and significant impact on economic growth. The human capital index, health index, and education index has also a direct and significant impact on the economic development of Pakistan. It implies that an increase in human capital, health, and education enrollment cause to increase in economic growth.current research established an affiliation of economic growth with human capital on the aggregated and disaggregated level.