The Impact of Human Capital and Technological Progress on Economic Growth: Evidence from Pakistan (1995–2022)

Abstract

The study investigates the dynamic relationship between human capital, technological progress, and economic growth in Pakistan using annual time-series data covering the period 1995–2022. Employing the Autoregressive Distributed Lag (ARDL) approach, the analysis explores both short-run fluctuations and long-run equilibrium linkages among the variables. Within this analytical framework, human capital is proxied by secondary school enrollment, while technological advancement is considered a complementary driver of economic growth. The results of the co-integration tests indicate a stable long-run association among economic growth, human capital, and technological development. Empirical evidence demonstrates that improvements in education and technological capacity significantly enhance economic performance in both the short and long term. These findings emphasize that Pakistan’s prospects for achieving sustainable growth rely heavily on strengthening its educational infrastructure and increasing investments in research and development. Moreover, expanding access to quality education and formulating innovation-driven policies are essential steps toward fostering inclusive, technology-oriented, and resilient economic development in the years ahead.