Analyzing The Determinants Of Household Human Capital Investment Behavior In The Rural Areas Of Pakistan : A Case Study Of District Swabi)

Abstract

The importance of human capital investment in attracting physical capital cannot be denied by any country while making their policies. Evidently, many nations have accomplished their present state of development by profoundly investing in their human capital.This research paper elucidates the factors that are active in bringing changes in household behavior regarding investment in human capital, which ultimately leads to sustainable economic growth. This is the first study of its kind about the rural areas of Pakistan in the sense that it has incorporated all the three components of human capital investment viz, education, health and nutrition. To achieve the objectives of the research three rural areas of district Swabi has been taken and data has been collected by taking a sample of a total of 250 respondents. A questionnaire is distributed and data is collected and then analyzed using regression analysis. Six variables are selected for analysis. This research through multivariate analysis establishes the positive relationship between behavioral and socio-economic factors of household. It also indicates negative relationship between household behavior and prices of goods and services. Proper infrastructure and availability of required goods and services has a profound effect on the behavioral competencies towards human Capital Investment