Impact of Human Capital Development and Economic Growth on Global Competitiveness

Abstract

The focus of this study is on the growing importance of human capital development in a number of developed, emerging, and developing countries, including Pakistan. The panel data analysis uses traditional approaches to examine observations from 1990 to 2019. The study’s main goal was to look at the impact of human capital development and growth on competitiveness. The dependent variable in the model is the global competitiveness index (GCI), with human capital, GDP per capita, GNP per capita, physical capital growth, and inflation as explanatory variables. Empirical data consistently demonstrates that human capital is the paramount asset in all economies, regardless of their development status. Its strong connection to competitiveness underscores the need to thoroughly evaluate policies impacting human capital development across nations. This assessment is crucial for understanding the interplay of policies and human capital development, a key factor in achieving desired outcomes.