Solow growth model explains the relationshiop between labor, capital and technology and their impact on national output.
One of its functions suggests that output increases as capital increases and vice versa.
We used actual data of Pakistan economy to determine if this is actually true. Here output is GDP per capita and capital is Gross Capital Formation per person.
The resulting trendline inclines with the theory of Solow Model.
| Year | Output | Capital |
| 1960 | 82.54724 | 9.539271 |
| 1961 | 88.17241 | 14.868967 |
| 1962 | 89.83771 | 16.333760 |
| 1963 | 93.98868 | 19.626298 |
| 1964 | 103.53603 | 21.240379 |
| 1965 | 115.73776 | 24.846676 |
| 1966 | 123.90256 | 19.775967 |
| 1967 | 138.15438 | 23.072099 |
| 1968 | 146.97921 | 26.484872 |
| 1969 | 152.68050 | 22.525109 |
| 1970 | 172.61073 | 27.260416 |
| 1971 | 177.62717 | 27.766231 |
| 1972 | 151.76677 | 21.513721 |
| 1973 | 100.30028 | 12.969309 |
| 1974 | 135.23844 | 18.084109 |
| 1975 | 169.79123 | 27.552925 |
| 1976 | 193.83608 | 33.423809 |
| 1977 | 213.20455 | 41.083892 |
| 1978 | 243.46083 | 43.477368 |
| 1979 | 260.79904 | 46.618189 |
| 1980 | 303.44895 | 56.082832 |
| 1981 | 348.22390 | 65.376163 |
| 1982 | 368.21445 | 70.922616 |
| 1983 | 332.47595 | 62.504787 |
| 1984 | 349.12239 | 63.786472 |
| 1985 | 337.72601 | 61.872006 |
| 1986 | 334.84755 | 62.865423 |
| 1987 | 339.08484 | 64.881602 |
| 1988 | 379.13579 | 68.298324 |
| 1989 | 384.08642 | 72.636342 |
| 1990 | 371.57262 | 70.358660 |
| 1991 | 410.47402 | 78.098439 |
| 1992 | 427.57276 | 86.526788 |
| 1993 | 440.92932 | 91.793833 |
| 1994 | 433.28858 | 84.692421 |
| 1995 | 493.66150 | 91.552110 |
| 1996 | 502.78670 | 95.512668 |
| 1997 | 483.65293 | 86.666720 |
| 1998 | 470.24892 | 83.286726 |
| 1999 | 465.07576 | 72.388775 |
| 2000 | 533.86241 | 91.966504 |
| 2001 | 510.65681 | 86.793050 |
| 2002 | 499.86000 | 82.890592 |
| 2003 | 563.59434 | 94.447244 |
| 2004 | 649.80482 | 107.724718 |
| 2005 | 711.46994 | 135.757397 |
| 2006 | 873.77027 | 168.917263 |
| 2007 | 950.43279 | 178.558467 |
| 2008 | 1039.31208 | 199.608668 |
| 2009 | 1006.60399 | 176.653772 |
| 2010 | 1040.14226 | 164.389887 |
| 2011 | 1226.21531 | 173.149295 |
| 2012 | 1261.20896 | 190.139339 |
| 2013 | 1272.44106 | 190.323233 |
| 2014 | 1316.98096 | 192.743742 |
| 2015 | 1428.63762 | 224.396556 |
| 2016 | 1443.62501 | 224.547532 |
| 2017 | 1547.85341 | 249.117165 |
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