Relation between Human Capital and Economic Growth: Evidence from Pakistan

This study investigates the impact of human capital on economic growth ofPakistan. Gross Domestic Product is employed as a dependent variable. Human capital indicators (proxied through public sector spending on health and education, primary education, secondary education and higher education enrollment), physical capital and labor force participation rate are used as independent variables. The time series data is taken from various issues of Economic Survey of Pakistan and Labor Force Surveys for the time period 1971-2013. The long run between the variables is checked through Autoregressive Regressive Distributed Lag Model. Short run relationship is find out through Error correction model. The results explain that there is a significant and long run relationship between the variables