Impact of Human Capital on Economic Growth: A Panel Study

    Authors:

    Saba Jameel, Muhammad Zahid Naeem

    Citation:

    Jameel, S. and Naeem, M. Z. (2016). Impact of Human Capital on Economic Growth: A Panel Study. Bulletin of Business and Economics, 5(4), 231-238.

    Abstract:

    Pakistan is in the race of economic development like other developing countries. The government of Pakistan, like that of other developing countries would invest in human capital at the expense of its economic growth. This issue is more sensitive in nature, which is going to explored through the relationship between human capital and economic growth in case of panel of eleven (11) countries. This investigation is accomplished by using the panel data during the period 1992-2014. The gross domestic product (GDP) as the economic indicator and the investment, net secondary school enrollment, health expenditures, total labor force and life expectancy at birth as the human capital indicator. The panel econometrics tools like Panel Augmented Dickey Fuller (ADF) unit root test, Pooled OLS test, fixed effect test, redundant variable f-test and Hausman test are applied to investigate such relationship. The results derived by applying these panel econometrics tools show that there is a long term relationship between the real gross domestic product (GDP) and human capital in fixed effect OLS test.

    Keywords:

    GDP, Human Capital, Life Expectancy, Investment

    Jel Code:

    J24, J17, P33

    Article Type:

    Research Article

    Pages:

    231-248

    Publisher:

    Research Foundation for Humanity (RFH)

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