Impact of Human Capital Investment on Economic Growth in Muslim and Non-Muslim Asian Countries

Authors

  • Muhammad Irfan Chani Department of Management Sciences, COMSATS University Islamabad, Vehari Campus Author
  • Muhammad Ramzan Sheikh Associate Professor of Economics, Bahauddin Zakariya University, Multan Author
  • Muhammad Mansha Department of Management Sciences, COMSATS University Islamabad, Vehari Campus Author
  • Asad Abbas Department of Management Sciences, COMSATS University Islamabad, Vehari Campus Author
  • Javed Iqbal Department of Economics, The University of Punjab, Lahore Author

Keywords:

Economic growth, Panel FMOLS, Human capital, Muslims, Non-Muslims, SAARC, ASEAN

Abstract

This research attempts to examine the long run relationship between human capital investment and economic growth. This study consists of 12 selected Muslims and Non-Muslims countries from SAARC and ASEAN region by taking annual data from 2001 to 2015. The objective of this research is to analyze the influence of human capital investment, physical capital investment on economic growth. To encounter the objective of the study IPS unit root test is applied for determining the stationarity of data and Pedroni cointegration test is applied to observe the existence of cointegration. Fully Modified Ordinary Least Square (FMOLS) econometrics methods have been applied to find the relationship between human capital investment, physical capital investment and economic growth. In this study, the data of all variables have been taken from World Bank Database (WDI). The results of panel FMOLS described that the education expenditure, health expenditure, gross fixed capital formation, labor force and inflation positively linked with economic growth.

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Published

2020-06-30

Issue

Vol. 35 No. 53 (2020): AL-AZVA

Section

Articles