Examining the Nexus Between Human Capital Development and Investment Flows in Uzbekistan’s Regions: An Econometric Approach

This study investigates the interrelation of human capital, investment and regional economic development using balanced panel data for the period of 2010 to 2014 by applying the Panel Autoregressive Distributed Lag (ARDL) model for 14 regions of Uzbekistan. ADF and PP tests were used to determine the type of stationarity of the variables, while the bounds testing approach was developed to test cointegration in the panel model, meaning a long-run equilibrium relationship exists. The results found that major elements of human capital development, such as education and health, are significant and affect life expectancy positively, while unemployment affects it negatively in the panel group, respectively. According to the coefficient of the error correction term (ECT), short-run disequilibrium converges to a long-run equilibrium at a reasonably fast speed. The ECT was confirmed to be negative and statistically significant. The study provides strong empirical evidence which highlights the importance of human capital investment in a regional development strategy to enhance economic growth and achieve sustainable economic prosperity.

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Journal
Икономически изследвания
Published
2026-11-06
DOI
https://doi.org/10.56497/esj260802
Primary Topic
Economic Growth and Productivity
Type
article
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article

Examining the Nexus Between Human Capital Development and Investment Flows in Uzbekistan’s Regions: An Econometric Approach

Abdulla Ibragimov, Samira Yakubova, Dinara Abdikarimova, Fayzullokh Sattoriy
2 links
Икономически изследвания
Economic Growth and Productivity
article

Examining the Nexus Between Human Capital Development and Investment Flows in Uzbekistan’s Regions: An Econometric Approach

Abdulla Ibragimov, Samira Yakubova, Dinara Abdikarimova, Fayzullokh Sattoriy
article en

Abstract

This study investigates the interrelation of human capital, investment and regional economic development using balanced panel data for the period of 2010 to 2014 by applying the Panel Autoregressive Distributed Lag (ARDL) model for 14 regions of Uzbekistan. ADF and PP tests were used to determine the type of stationarity of the variables, while the bounds testing approach was developed to test cointegration in the panel model, meaning a long-run equilibrium relationship exists. The results found that major elements of human capital development, such as education and health, are significant and affect life expectancy positively, while unemployment affects it negatively in the panel group, respectively. According to the coefficient of the error correction term (ECT), short-run disequilibrium converges to a long-run equilibrium at a reasonably fast speed. The ECT was confirmed to be negative and statistically significant. The study provides strong empirical evidence which highlights the importance of human capital investment in a regional development strategy to enhance economic growth and achieve sustainable economic prosperity.

Икономически изследванияVol. 35(8)
Kimyo International University in Tashkent (UZ), O‘zbekiston Respublikasi Prezident huzuridagi davlat siyosati va boshqaruv akademiyasi (UZ)
Decent work and economic growth
Openalex Percentile: Top 11%
Economic Growth and Productivity
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