Influence of financial support of human capital development on economic growth

  • 463 Views
  • 175 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The COVID-19 pandemic has intensified the issue of strengthening the financial support of human capital development and enhancing its impact on economic growth. This study aims to assess the impact of financial support of human capital development in terms of public spending on health and education on economic growth. Economic-statistical methods and correlation-regression analysis are used to determine the impact of the share of public spending on health and education in GDP on real GDP, and to assess the characteristics of financial support of human capital development. The study reveals evidence of a link between the level of public funding for human capital development and real GDP. At the same time, for Ukraine and the countries-full members of the Commonwealth of Independent States, in particular Armenia, Azerbaijan, Kazakhstan, Moldova, Belarus, the Kyrgyz Republic, Uzbekistan, and Russia, the results of the study were mixed. In recent years, with the share of public spending on health and education in GDP growing by 1 percentage point, real GDP has grown in 4 and 5 countries, respectively, and decreased in 5 and 4 countries out of 9 studied. The results show that a significant deterrent to strengthening the financial support of human capital development and its impact on economic growth is a significant level of uncertainty in economic processes, which determines the importance of revising the forms and methods of public financing of human capital.

view full abstract hide full abstract
    • Table 1. Growth rate of real GDP, GDP per capita (purchasing power parity)
    • Table 2. Average life expectancy and average pension
    • Table 3. Ratio of students and teachers (primary school), level of completion of primary schools, ratio of male and female students in universities, %
    • Table 4. Government expenditure on education, domestic general government health expenditure (% of GDP)
    • Conceptualization
      Igor Chugunov, Valentyna Makohon, Tatjana Kaneva, Iryna Adamenko
    • Formal Analysis
      Igor Chugunov, Iryna Adamenko
    • Funding acquisition
      Igor Chugunov, Valentyna Makohon, Iryna Adamenko
    • Investigation
      Igor Chugunov, Tatjana Kaneva
    • Resources
      Igor Chugunov, Valentyna Makohon, Iryna Adamenko
    • Writing – review & editing
      Igor Chugunov, Tatjana Kaneva, Iryna Adamenko
    • Data curation
      Valentyna Makohon
    • Methodology
      Valentyna Makohon
    • Project administration
      Valentyna Makohon
    • Supervision
      Valentyna Makohon, Tatjana Kaneva
    • Visualization
      Valentyna Makohon
    • Writing – original draft
      Valentyna Makohon
    • Validation
      Tatjana Kaneva, Iryna Adamenko