Impact of Human Capital on Economic Growth: A Case of SAARC Countries

Abstract

The study intends to examine the influence of human capital on the 10-year economic growth of SAARC nations. It comprises of one explained, three explanatory and two control variables. A panel data regression, fixed effect, random effect model and hausman specification tests were applied in the study. Econometrics findings found that labor force has significant impact on GDP/capita of SAARC countries whereas government spending on education and primary school enrollment had no discernible effects on economic growth. The results of our research offer guidance on how the national government can invest on human capital to promote economic growth.