Open AccessNEXUS BETWEEN HUMAN CAPITAL AND ECONOMIC GROWTH: EVIDENCE FROM GROWTH MODEL IN PAKISTAN
Publication year - 2018
Publication title -
pakistan journal of humanities and social sciences research
Language(s) - English
Resource type - Journals
eISSN - 2663-922X
pISSN - 2663-9211
DOI - 10.37605/pjhssr.1.1.4
Subject(s) - economics , human capital , nexus (standard) , per capita , gross fixed capital formation , capital formation , macroeconomics , physical capital , development economics , econometrics , gross domestic product , economic growth , financial capital , population , demography , sociology , computer science , embedded system
In the global economy, every country wants to boost the economic development of the economy in the nation. In this, good governance can play significant role in development of the economy. The present study aims at investigating the impact of human and physical capital on economic growth in Pakistan. Annually time series data is used for analysis during the period of 1980-2016. The data has been taken from the ‘Pakistan Economic Survey’ and ‘A Handbook of Statistics 2015’. The ADF (Augmented Dickey-fuller) test is used for stationary and non-stationary process. For parameters estimation and co-integration, the Engle-Granger approach is used to indicate that there is long-run connection among the study concerned variables. The empirical finding of this study demonstrated that gross fixed capital formation, literacy rate, per-capita health expenditure and secondary school enrolment rate have a significant impact on the economic growth of Pakistan. There is co-integration among variables of the model.