Secondary & Tertiary Education, Health, Investment and Human Capital in Pakistan: A Time Series Analysis

Abstract

This paper contains a new human capital paradigm that measures Pakistan's economic development and human capital formation. The aim of this paper is to empirically estimate the impact of economic growth on human capital formation in Pakistan. Human capital is used as the dependent variable with govt. expenditures on secondary education, expenditures on tertiary education, current health expenditure and GROSS fixed capital formation as the independent variables. Data is taken from WDI and the P.W.T (10) for the period of 1990-2020. This study is based on time series analysis. In this study ADF unit root and ARDL techniques are used to analyze. gross fixed capital formation, tertiary education and health expenditures are necessary tools for human capital. Tertiary education enhances the productivity of individuals in Pakistan. Findings of this analysis argued that Pakistan has paid much attention to the quality of tertiary education and on current health expenditures and also try to the improvement of the net investment. It will be beneficial for the entire country.