Impact Of Human Capital Development on Pakistan's Economic Growth

The main objective of this paper is to check the impact of human capital development on Pakistan's economic growth. The study analyses the theoretical and empirical significance of human capital development and its impact on Pakistan's economic growth. We used secondary time series data from 1985-2014. The ARDL method has been used to check the short run and long run relationship between human capital development and economic growth. Augmented Dickey Fuller (ADF) test is used to check the stationary of the variables. The results show that secondary school enrolment ratio, life expectancy and gross fixed capital formation have positive and statistical impact on the economic growth while inflation have negative but statistical impact on the economic growth. However, the labor force participation rate has positive & insignificant impact on the economic growth. Our empirical results show that the human capital development plays a crucial role for the economic growth of the country, so the government should enhance allocation of funds for education and health sectors.