Efficacy of Investment in Educational Institutes and Human Capital for Sustainable Economic Growth in Pakistan

Abstract

Efficacy of investment in educational institutes, and human capital have drastic role in economic upturn. However, at various levels human capital demonstrated regarding infrastructure of education that becomes a more relevant measure of human capital alternative to enrollment at school in different institutions. This study has taken four decades annual data to investigate the association between educational institutions and human capital on economic upswing. The data starts from 1978 to 2018. The Cob Douglas production function is used to determine the efficacy of human capital, and upswing of the economy in Pakistan. The overall results reveal that there is a significant role of human capital (educational institutions) in economic growth in the long run. It is also observed that long-term development across countries has been propelled by productivity growth at a higher scale. Economic upswing accelerates the labor productivity, if necessary, actions should be part of Government investment. The decisions, and policies in educational institutes should be positive and proof of safe flight through human capital efficacy.