There are several studies that have focused on the direct impact of the HDI on economic growth. Likewise, there is also a focus on fixed capital formation for economic growth. While we focus in this research on the indirect impact on economic growth, by studying the impact of the increase in human capital investment on total fixed capital formation in the short and long term using the ARDL model.
The issue is that increase in the level of human development may cause a decrease in the fixed capital formation of society, or that the increase of human capital in the economy makes it more effective on increasing the fixed capital formation.
we used the Auto Regressive Distributed-Lagged (ARDL) bound testing and regression analysis in order to evaluate the co-integration and measuring the latter relationship in the short and long run
this research aims to highlight this relationship and analyze whether the relationship is positive or negative and specifically examine if the human capital has a role in stimulating the fixed capital formation in Egypt during the period from 1990 to 2018 in the long run and short run.