HUMAN CAPITAL, EQUIPMENT INVESTMENT AND THE ECONOMIC GROWTH OF PAKISTAN

Abstract

The existing paper has explored the concept of equipment investment, human capital investment and economic growth. The major objective was to analyze the relationship between the equipment investment, human capital investment and economic growth in Pakistan. The data in the study has been collected from World Bank Indicators and published reports of SBP from 1985 to 2018. The findings of the study argued that there is a long run relationship between equipment investment, human capital investment and economic growth of Pakistan. The ruslts suggested that equipment investment, human capital investment is having positive impact on the economic growth. The higher ratio of equipment investment means that the government is supporting the local industries which can helpful in increasing the production capacity and industrial progress can be enhanced. The higher education enrollment can be the most effective factor in getting sustainable economic growth. The authorities should revise their economic policies by providing higher facilities to the local industries and provide them most updated equipments. The government should start education enrollment schemes and support poor families to get enroll their children which will be a positive indication for the economic growth in future.