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584
FORMATION AND USE OF HUMAN CAPITAL IN THE NAMANGAN REGION
Bustonov Mansurjon Mardonakulovich
Professor of Namangan Technical University Doctor of Economics
Email:
Akmal Mamadaliev Gayratalievich
assistant of Namangan Technical University
Annotation:
Evolutionary approaches of scientists to the study of the category “human capital”
allow us to state that the formation of the theory of human capital is a process of accumulation of
scientific views and theoretical and methodological concepts of the role and place of man in the
economy based on the combination and synthesis of various scientific schools, trends,
accumulation of ideas of scientists from different times . The formation of the theory occurred
gradually under the influence of scientific and technological progress and changes in socio-
economic social relations over time.
Keywords:
Population, labor force, human capital, education, employment, ecology, productive
capital, regional economy.
Introduction.
The study established that modern concepts of human capital development place
emphasis on man as the main resource and value of society's development. The main attention is
paid to improving the quality of human capital, where the foundation is the introduction of
lifelong learning and personal development, taking into account abilities and capabilities.
Classification of types of investments in human capital, which, unlike the existing ones, is
supplemented with classification criteria taking into account the influence of globalization on
human development, where the globalization level (human capital of transnational corporations)
is highlighted. Below is a conceptual model of a system for investing in human development (fig.
1).
In the model discussed below, a new factor is added to the classic idea of the “Solow
residual” - “human capital”, and as this factor is the ratio of expenditures allocated from the state
budget to the social sector and the social sphere. protection of the population is taken into
account in GDP. This method also allows us to assess which factor should be given more
attention to ensure stable economic growth in the national economy and which factor has the
greatest potential for efficiency.
So, we use the Solow balance to estimate the gross efficiency of economic growth factors. This
method shows how physical capital, human capital and labor force affect overall economic
growth.
Using human capital, the classical form of the Solow remainder takes the following form:
( )
( )
( )
( )
( )
( )
( )
( )
)
(
)
(
)
(
ѓІ
ѓўѓІ
)
(
t
H
t
H
t
t
L
t
L
t
t
K
t
K
t
t
t
t
TFP
h
l
k
D
-
D
-
D
-
=
g
b
a
, (
1
)
в этом
( ) ( )
1
)
(
=
+
+
t
t
t
h
l
k
g
b
a
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585
MODEL OF AN INVESTMENT SYSTEM IN HUMAN CAPITAL
Mechanism of state regulation of investment in human capital development (goals,
principles, methods, levers)
Institutes of state regulation of human capital development (legal, political, institute of
education and vocational training, health care, demographic, social and migration policies,
institute of income and wages, social institutions
investment levels
in human capital
Impact factors
Principles
Nano level
(individual)
Micro level
(corporate)
Enterprises,
organizations
Macro level (state))
Global
(TNK))
SOURCES OF INVESTMENT IN HUMAN CAPITAL
The state budget
Regional and local
budget
Meso level
(regional)
Public funds
Individual
INVESTMENT IN HUMAN CAPITAL
Investments in
education
Investments in
healthcare
Investment in
on-the-job
training
Investments in
science and
development of
intelligence
Investments in
education,
development,
self-development
Investment in
searching for
economic
information
Investments in
migration
processes
Education
capital
Health capital
Production
preparation
capital
Scientific capital
(intellectual)
Cultural and
spiritual capital
Information
capital
Mobility capital
Increased efficiency from investments in human capital
Innovative development of human capital (emphasis on human creativity, creativity, professionalism)
Innovation and investment model of regional economic development in the context of globalization
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Figure 1. Conceptual model of a system for investing in human capital development
Here:
)
(
t
TFP
- the residual term of the model or “Solow residual” (
)
(
t
TFP
- total factor
productivity
Y
Y
ѓў
- gross factor productivity),
K
K
ѓў
- annual growth rates of GDP, - annual growth
rates of capital, - annual growth rates of labor,
L
L
ѓў
- annual growth rates. human capital, - the
coefficient of physical capital in GDP,
H
H
ѓў
- the share of labor in GDP, - the share of human
capital in GDP.
The procedure for calculating the share of coefficients:
- write the equation as follows:
[(ratio of investment in fixed capital in period t to GDP) + (ratio of the labor factor in the
economy in period t) + (ratio of expenditure on human capital in period t (ratio of the state
budget to the social sector and spending on social protection in GDP) in GDP)] = 1 (Table 1).
Table 1
Results of accounting for the share of factors in Uzbekistan
years
GDP
volume
(billion
soums)
Volume
of
investments in
fixed assets
(billion soums)
Ratio
of
investment in
fixed capital to
GDP
(coefficient)
Ratio
of
expenditures on
human
capital
(share
of
expenditures on
the social sphere
and
social
protection from
the state budget
to GDP) in GDP
(coefficient)
Share of the
labor factor
in
the
economy's
GDP
(coefficient)
%
coefficient
1
2
3
4
[(3 - column)/
(2 - column)]
5
6
[(5-
column) /
100]
7
[1
-
(4th
column + 6th
column)]
2017
317 476,4
72 155,2
0,238501
13,7
0,137
0,89
1
developed by the author
2
Author's calculations based on data from the State Statistics Committee of the Republic of Uzbekistan.
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587
2018
426 641,0
124 231,3
0,304851
13,7
0,137
0,89
2019
532 712,5
195 927,3
0,370099
13,8
0,138
0,76
2020
605 514,9
210 195,1
0,348841
13,8
0,138
0,76
2021
738
425,20
239552,6
0,3244101
12,4
0,124
0,55
2022
896
617,90
266240
0,2969381
13,13 0,1313
0,57
The procedure for calculating the growth rate of expenses on “human capital”:
[growth rate of spending on human capital in period t = ratio of spending on human capital
(share of the state budget for the social sector and spending on social protection in GDP) in GDP
x annual growth rate of GDP] (table 2).
Table 2
Results of accounting for growth rates of expenditure on human capital in Uzbekistan
years
Annual
GDP
growth
rate
(in
percentage
s)
Ratio of expenditures on human
capital (share of expenditures
on the social sphere and social
protection from the state budget
to GDP) in GDP
(coefficient)
Annual growth rate (in
percent) of expenditure on
human capital (ratio of state
budget to expenditure on the
social sector and social
protection in GDP)
%
коэф.
1
2
3
4
[(3 - column) / 100]
5
[(2-column) • (4-column)]
2017
4,4
13,7
0,137
0,59
2018
5,4
13,7
0,137
0,74
2019
5,7
13,8
0,138
0,79
2020
5,5
13,8
0,138
0,76
2021
7,4
12,4
0,124
0,92
2022
5,7
13,13
0,1313
0,75
3
Author's calculations based on data from the State Statistics Committee of the Republic of Uzbekistan.
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The procedure for calculating the gross efficiency of factors:
[gross factor efficiency in period t = GDP growth rate in period t - (ratio of physical capital to
GDP in period t - growth rate of physical capital in period t) - (in period t - ratio of economy
factor labor to GDP x labor factor growth rate in economics) - (the ratio of expenditures on
human capital in period t (the ratio of expenditures on the social sector and social protection
from the state budget to GDP) in GDP x the growth rate of expenditures on human capital in
period t)] (table 3).
Table 3
Results of accounting for gross factor efficiency in Uzbekistan
yea
rs
GDP
growth
rate
(percent
age)
Ratio of
investm
ent
in
fixed
capital
to GDP
(coeffici
ent)
Growth
rate of
investme
nt
in
fixed
capital
(in
percenta
ges)
Share of
the
labor
factor
in
the
econom
y's GDP
(coeffici
ent)
Labor
factor
growth
rate in
the
economy
(percent
age)
Ratio of
human
capital
expendit
ures to
GDP
(coefficie
nt)
Growth
rate of
human
capital
expendit
ure
(percent
age)
Gross
factor
producti
vity
TFP
(in
percenta
ges)
1
2
3
4
5
6
7
8
9
[2-(3·4)-
(5·6)
-
(7·8)]
201
7
4,5
0,24
29,9
0,89
4,01
0,137
0,59
-6,32
201
8
5,4
0,30
38,1
0,89
4,81
0,137
0,74
-10,41
201
9
5,7
0,37
38,1
0,76
4,33
0,138
0,79
-11,79
202
0
5,5
0,34
4,4
0,76
4,18
0,138
0,76
0,72
4
Author's calculations based on data from the State Statistics Committee of the Republic of Uzbekistan.
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589
202
1
7,4
0,32
5,2
0,55
4,07
0,124
0,92
3,38
202
2
5,7
0,30
9,0
0,57
3,25
0,1313
0,75
1,05
Modern theories of economic growth show that investment in human capital is important for
ensuring long-term economic growth. Among them, increasing the level of education and
literacy in the country, as well as high-level investments in human capital will lead to rapid GDP
growth. In addition, the higher the share of human capital in production, the faster the economy
will grow.
According to statistical data, in recent years, our national economy has paid much attention to
endogenous factors of economic growth. In particular, in the structure of expenditures of the
state budget of Uzbekistan, the largest share is made up of expenditures on the social sphere and
social support of the population.
According to the analysis, the average GDP growth rate in our national economy from 2000 to
2023 was 6.6%, of which physical capital accounted for 2.8%, total factor efficiency - 2.1%,
labor factor - 1 .6% and 0.089% correspond to the contribution of human capital. Thus, it can be
seen that physical capital contributes more to economic growth than labor factor and human
capital.
However, we cannot consider the contribution of human capital in the amount of 0.089% high
for the sustainable growth of our national economy, in a situation where it has been proven that
the influence of human capital and innovation on economic growth is high in world practice.
In particular, today in Uzbekistan there are great opportunities to ensure long-term economic
growth, further increase investment potential and accelerate innovation processes; for this, it is
desirable to further strengthen funding for the R&D sector and create free innovation zones like
technology parks in Uzbekistan. higher education institutions with high potential.
Thus, we propose a conceptual model for the formation of the institutional environment of
human capital in Uzbekistan, taking into account the regional influence of principles and factors
(Fig. 2).
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Conceptual model of the formation of the institutional environment of human capital in the context of
globalization
Mechanism of state regulation of the formation and development of human capital (strategic goals,
methods, principles, levers, instruments of influence)
Principles of human capital formation
Scientific validity
Systematicity
Determination
Priorities
Complexity
Consistency of
government
regulation
Strategic
Continuous
learning
Stimulating the
exchange of
knowledge and
skills
Effective
participation in
the development
processes of an
innovative
economy
Developing the
abilities of human
capital to
generate
innovation
Developing a
person's ability to
work in a team
Developing a
person’s desire
for self-
development and
self-improvement
Continuity in
time
Efficiency and
optimality of
investments
Conducting a
systematic
assessment of
human capital
Progressiveness
and perspective
Willingness to
make decisions
and take
responsibility,
implement
innovations
Socially oriented
Global
transformation of
the human capital
development
model
Moral and ethical
principle
Factors influencing the development of human capital
Demographic
Economic
Political-
administrative
Social
Social and labor
Educational and
professional
Scientific and
technical
Institutional
Legal
Environmental
Globalization
Spiritual-mental
Innovation and
investment
Production
Factors influencing the development of human capital
microenvironme
nt
macro
environment
Introduction of social and
innovative technologies in
corporations, increasing the
level of communication
человека, профессионализма
Threats from
globalization
globalization
processes
Benefits of
globalization
State policy: economic,
social, innovation and
investment
Development of an innovation and investment model of the regional economy
Uzbekistan
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Figure 2. Conceptual model of the formation of the institutional environment of human
capital in the context of globalization
Next, we will make calculations of human capital in the Namangan region for five years, for
2019-2023 (Table 4)
Table 4
Results of accounting for the share of factors in the Namangan region
years
GRP
volume
(billion
soums)
Volume
of
investments in
fixed assets
(billion soums)
Ratio
of
investment in
fixed assets to
GRP
(coefficient)
Ratio
of
expenditures on
human
capital
(share
of
expenditures on
the social sphere
and
social
protection from
the state budget
to GRP) in GRP
(coefficient)
Share of the
labor factor
in the GRP of
the economy
(coefficient)
%
коэф.
1
2
3
4
[(3 - column)/
(2 - column)]
5
6
[(5-
column)
/ 100]
7
[1
-
(4th
column + 6th
column)]
2018
13 129,0
8158,1
0,62
12,4*
0,124
0,256
2019
16 855,0
12084,9
0,72
10,5*
0,105
0,175
2020
19 420,9
12007,2
0,62
7,65*
0,076
0,3035
2021
23 867,4
12982,0
0,54
12,65* 0,126
0,3335
2022
29 045,6
14775,1
0,51
10,35
0,103
0,3865
Note: * - author's calculations
The procedure for calculating the growth rate of expenses on “human capital”:
5
Developed by the author
6
Author's calculations based on data from the State Statistics Committee of the Republic of Uzbekistan.
7
Data budget for citizens 2022 Namangan region
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[growth rate of spending on human capital in period t = ratio of spending on human capital
(share of the state budget for the social sector and spending on social protection in GRP) in GRP
x annual growth rate of GDP] (Table 5).
Table 5
Results of accounting for the growth rate of spending on human capital in the Namangan
region
years
Annual
GRP
growth
rate
(in
percentage
s)
Ratio of expenditures on human
capital (share of expenditures
on the social sphere and social
protection from the state budget
to GRP) in GRP
(coefficient)
Annual growth rate (in
percent) of expenditures on
human capital (ratio of the
state budget to expenditures
on the social sector and social
protection in GRP)
%
coefficient
1
2
3
4
[(3 - column) / 100]
5
[(2-column) • (4-column)]
2018
5,0
12,4
0,12
0,6
2019
6,9
10,5
0,10
0,69
2020
4,5
7,65
0,08
0,36
2021
9,5
12,65
0,13
1,235
2022
7,2
10,35
0,10
0,72
The procedure for calculating the gross efficiency of factors:
[gross efficiency of factors in period t = growth rate of GRP in period t - (ratio of physical capital
to GRP in period t - growth rate of physical capital in period t) - (in period t - ratio of labor factor
of the economy to GRP x growth rate of labor factor in the economy) - (ratio of expenditures on
human capital in period t (ratio of expenditures on the social sector and social protection from
the state budget to GRP) in GRP x growth rate of expenditures on human capital in period t)]
(Table 6).
Table 6
Results of accounting for gross factor efficiency in Namangan region
8
Author's calculations based on data from the State Statistics Committee of the Republic of Uzbekistan.
9
Author's calculations based on data from the State Statistics Committee of the Republic of Uzbekistan.
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yea
rs
GRP
growt
h rate
(in
perce
nt)
Ratio of
investme
nt
in
fixed
assets to
GRP
(coeffici
ent)
Growth
rate
of
investme
nt
in
fixed
capital
(in
percenta
ges)
Share of
the
labor
factor in
the GRP
of
the
economy
(coeffici
ent)
Labor
factor
growth
rate
in
the
economy
(percent
age)
Ratio of
expenses
on
human
capital
to GRP
(coeffici
ent)
Growth
rate
of
human
capital
expendit
ure
(percent
age)
Gross
factor
producti
vity
TFP
(in
percenta
ges)
1
2
3
4
5
6
7
8
9
[2-(3·4)-
(5·6)
-
(7·8)]
201
8
5,0
0,62
3,7
0,26
1,3
0,12
0,6
2,296
201
9
6,9
0,72
48
0,18
1,242
0,11
0,69
-
27,95946
202
0
4,5
0,62
-0,7
0,30
1,35
0,08
0,36
4,5002
202
1
9,5
0,54
8,1
0,33
3,135
0,13
1,235
3,9309
202
2
7,2
0,51
13,8
0,39
2,808
0,103
0,72
-1,00728
We believe that a number of problems of innovative development are of regional importance.
Each region should have its own regional innovation program that stimulates the mass creation
and development of innovations, as well as the development of regional bodies for coordinating
and developing innovation activities in the regions.
Conclusions.
The study showed that the calculation of the value of the integral indicator of the
state’s influence on the development of human capital in the context of globalization and the
integral indicator of the innovative development of human capital, taking into account
globalization trends, are within the values of indicators above the average level of human
development. This indicates a more accelerated pace of use of human potential and the need to
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increase the role of the state in the efficient use of human capital and its further development,
which will contribute to the growth of the competitiveness of the national economy.
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