Bhim Prasad Bhusal
Abstract: The study focuses onto examine the impact of human capital in the economic growth of South Asian countries and it investigates the effectiveness of policy implication on education in these countries. For this extent, a quantitative research method is employed to analyse the relationship between human capital and economic growth. The empirical results provide the evidence that government expenditure on education is positive and significant on secondary education at 10 % level of significance and it is significant at 5 % or below for tertiary education but insignificant on primary school enrollment. Government expenditure on primary school enrollment is positive and significant in RE model at 5 % level of significance but insignificant in FE model. Government expenditure is positive and highly significant on tertiary school enrollment and GOVET is positive and weakly significant. GOVES is significant at 5 % level of significance. The finding tells that there is weak contribution of human capital in the economic growth of these economies. Weak contribution of human capital in growth is attributed to inefficient and weak implementation of education policies. Therefore, education policies should strongly and effectively be implemented to achieve strong and significant impact of human capital on the economic growth of these countries.
Keywords: Economic Growth, Human Capital, School Enrollment, Fixed Effects, Random Effects