Contribution of female human capital in economic growth: an empirical analysis of Pakistan (1972–2012)

Abstract

This study is to find out an impact of female human capital on economic growth of Pakistan. The study has therefore, used gender separate human capital as an explanatory variable along with other factors, labor force and physical capital. In this regard a composite human capital has been constructed by taking education and health as a proxy for human capital. The long run and short run dynamics among female human capital and economic growth are empirically tested on time series data spread from 1972–2012. Johanson’s co-integration approach has been applied for the long run and Vector Error Correction Model used for the short run relationship. The results show that the long run relationship between female human capital and economic growth is positive and significant. While the short run impact of female human capital on economic growth is positive but statistically insignificant.