Impact of Human Capital and Infrastructure Development on Economic Growth in Pakistan

Abstract

The core purpose of the analysis is to explore the influence of human capital and infrastructure on Pakistan’s economic growth. The study is based on time series data covering the period from 1972 to 2013. The study has applied Johansen Cointegration technique to estimate the long run and short run relationship among variables. Results indicate that human capital and infrastructure development have positive and significant impact on economic growth. Further, Principal Component Analysis (PCA) is applied to construct infrastructure index to observe its impact on economic growth.