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The present paper studies the effects of financial development on the human capital development of Pakistan. An annual time series data over the period of 1991 to 2016 is used. Financial development is measured through three proxies, which are, bank deposits, broad money supply, and domestic credit to the private sector (DCPS). In addition, human capital development is measured by the human development index (HDI). The empirical findings indicate that a strong financial institution enhances human capital development in Pakistan. Similarly, the inflow of remittances increases human capital development. On the contrary, the unemployment rate, and a large population reduces the development of human capital. Thus, the findings of the present paper recommend some useful insights for the policymakers of Pakistan.

Imtiaz Arif, Lubna Khan. (2019) The Role of Financial Development in Human Capital Development: Evidence from Pakistan, Pakistan Journal of Commerce and Social Sciences, Volume 13, Issue 4.
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