Impact of Human Capital on Economic Growth

This book empirically examines the role of human capital in the economic growth of selected South Asian countries Pakistan, India and Bangladesh. The analysis is based on the time series data during 1986-2010 and a comparison has been made between three countries about their performance in growth of their economies. Health and Education are used as proxy for human capital. For this purpose, a three step methodology has been adopted. As first step unit root test is applied to test the stationarity of data. After that cointegration test and granger causality test is applied to test the causality between the variables. The results show that human capital is positively and significantly linked with economic growth of the countries under discussion.