Impact of Expenses on Human Capital on the Economic Growth of the Country: Case Study of the Republic of Kazakhstan

Abstract

Analysis of the impact of human capital on the efficiency of the economy of Kazakhstan was based on regression models with the use of statistical data on the volume of investments in professional and higher education, health care, and income per capita, life expectancy, and GDP per capita in 2005-2017. In the current conditions of Kazakhstan, it is found that investments in secondary and higher education and health care have no statistically significant link with the efficiency of the national economy, as well as life expectancy, while income per capita has an impact on economic growth. The low economic effect of expenditures in education and health care may evidence the ineffectiveness of such investments. Spending on higher education does not yet have a significant impact on the change of GDP. This fact indicates that the economy of Kazakhstan has not yet adopted an innovative character. It is necessary to focus on the training of qualified professional personnel at the lower and middle levels, especially on technical specialties.