Impact of Human Capital Formation on Economic Growth: Evidence From Pakistan

The objective of this paper is to study the situation of human capital formation in Pakistan. We used secondary data for the period from 2005-2006 to 2014-2015. OLS techniques applied for analysis of data. The results drawn through Linear Regression Model reveals that enrollment rate and low mortality rate lead to increase economic growth in Pakistan. The study uses information on infant mortality rate indicator of health and secondary school enrollment rate as indicator of education. It has been found that indicator of health has positive, robust and significant impact on productivity whereas the impact of enrollment rate as indicator of education has been found to be positive and significant. We find that education and health have negative impact on GDP due educated unemployed worker where consumer price index has a slight positive effect. These findings stress the need for improving education and health of public to ensure sustainable growth and economic development.