Human capital and economic growth in Central Asia

This study explores the long-term economic performance in former Soviet republics of Central Asia for the last three decades. We look at sources of economic growth based on the extended version of the neoclassical growth model. Our key focus is to see whether human capital in the form of education and health inputs has an impact on growth rates in the region. Results show that over the entire period under study, on average, the growth rates of total factor productivity (TFP) were not remarkable, ranging from 1.4% for Kazakhstan and 0.51% for Tajikistan to -1.13% for the Kyrgyz Republic. Kazakhstan as a frontier economy of the region maintained better economic results in almost all indicators. Since 2000, TFP growth rates were notably stronger in Tajikistan compared to Kazakhstan and the Kyrgyz Republic. However, a reduction in TFP in Tajikistan in the 1990s is attributed to the country's dire civil war.