Economic growth and human capital: the case of Kazakhstan

Bc. Tolkyn Aubakirova

Master's thesis

Abstract:

Human capital, as a factor of production, plays an essential role in the country's economic performance, while innovation has become a crucial driver of economic growth. This work aims to study the relationship between human capital, innovation, and economic growth, using the example of Kazakhstan, by conducting empirical analysis. The thesis summarizes articles on growth theories, return on education, innovation and Research and development investment impact on the quality of human capital, together with the analysis of current human capital-related policy implications in Kazakhstan. Using a time-series of 22 years, based on statistical data from the Bureau of National Statistics in Kazakhstan, the relationship between human capital, innovation and economic growth is analysed using several regression models – the ordinary least squares model and the two-stage least squares model. The latter model was selected as the best-fit estimate due to the endogeneity problem of explanatory variables. The empirical model identified the dependence of innovation production volumes and R&D expenditures, explaining its significant influence on the innovation level in the country. Moreover, the 2SLS model estimated the positive relationship between innovation level and economic growth through the annual GDP growth rate. Education-related variables also demonstrated a significant positive role in determining the country's economic prosperity. The studied and estimated positive relationship between human capital, innovation and economic growth advocates for proactive policy interventions and resource allocation for development purposes.

Keywords

Economic growth, OLS model, 2SLS model, Human capital, Innovation

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 30. 3. 2024

Obhajoba závěrečné práce

• Obhajoba proběhla 27. 5. 2024
• Vedúci: doc. Ing. Irena Benešová, Ph.D.
• Oponent: Julia Maria Fink, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management