The impact of investment in human capital on industrial development: An empirical analysis of Pakistan

Abstract

Continued industrial progress, primarily in Asia, has resulted in reasonable economic growth and a change in poverty over the past 10 years. Economic growth cannot be accelerated by stronger infrastructure, liberalized markets, or improved telecommunications unless there is a sufficient amount of investment in human capital. The primary goal of the study is to examine how human capital investments affect Pakistan's economic development between 2013 and 2023. As measures of investment in human capital, the study takes into account government spending on health, education, and the increase in the enrollment rate in vocational institutes. According to estimates, investing in health care and enrolling in vocational training has a good effect on Pakistan's industrial development. The empirical results are in line with previous research on the same topic for other economies. Policymaking is required in Pakistan in order to steer educational growth in the proper path for industrial development.