Human Development Index and its Effects on GDP of SAARC Countries (2005–2020)

This study provides an empirical assessment of how human development shapes economic performance in the SAARC region. Focusing on the period 2005–2020, the research analyzes the effects of the Human Development Index (HDI) and its core dimensions—education, health, and income—on the GDP of SAARC member countries. Using a panel ARDL modeling framework, the study distinguishes between short-run fluctuations and long-run structural relationships, allowing for a deeper understanding of the dynamic link between human capital formation and economic growth. The results show that while short-term effects remain limited, long-run improvements in human development significantly enhance economic output. These findings underscore the importance of strategic and sustained investment in human capital as a foundation for stable and inclusive economic growth within the SAARC region.