HUMAN CAPITAL, PHYSICAL CAPITAL, AND ECONOMIC GROWTH NEXUS: A DESCRIPTIVE ANALYSIS

Abstract

In formulating policies, no nation can dispute the significance of investing in human capital in attracting physical capital and fostering economic expansion. Economic Growth has a significant link with Physical Resources and Human Capital. The main aim of this study is to examine the relationship between economic growth and both physical and human capital. The study's main objective is to examine how Pakistan's economic growth has been impacted by both people and physical capital. This study attempts to evaluate the connection between Pakistan's total economic growth, human capital, and physical capital using World Bank time series data from 1990 to 2020. To determine the influence of physical capital and human resources on the nation's economic expansion, descriptive statistics are utilized. The significance of both human and physical capital for Pakistan's growth is highlighted by this study.  life expectancy influences human capital, gross fixed capital formation influences physical capital. The average life expectancy in Pakistan is 63 years, according to the results. Politically related flux is also revealed by gross fixed capital formation. It increased to 4.9 percent in 2020. Variations were also seen in the GDP growth rate. The pandemic of 2019 causes a reduction in gross fixed capital formation and life expectancy. The policy implications indicate the need for increased gross fixed capital investment. It is also recommended that the government set aside a sizable portion of its budget. In addition, to achieve economic growth, public awareness campaigns about investments in human and physical capital should be conducted.

Keywords: Physical Capital, Human Capital, Economic Growth, Descriptive Analysis, Pakistan