THE RELATION BETWEEN HUMAN CAPITAL AND ECONOMIC GROWTH IN THE COUNTRIES ATTAINED THEIR INDEPENDENCE WITH THE COLLAPSE OF THE USSR
THE RELATION BETWEEN HUMAN CAPITAL AND ECONOMIC GROWTH IN THE COUNTRIES ATTAINED THEIR INDEPENDENCE WITH THE COLLAPSE OF THE USSR

Summary/Abstract: In this study, the relationship between human capital and economic growth is tested by second generation panel data analysis for the countries gained independence after the collapse of the USSR with the help of four different models by using 1995-2014 period data. Cross-section dependence among these countries was tested by means of Breusch and Pagan (1980) LM test, Pesaran (2004) scaled LM test, Baltagi, Feng, and Kao (2012) bias-corrected scaled LM test and Pesaran (2004) CD methods. Result of this analysis show that there are cross-sectional dependence among these countries. Stationarity of the series is investigated by Hadri and Kuruzomi (2012) panel unit root test and reached that all series are I(1). Westerlund (2008) Durbin-Hausman panel cointegration test is separately conducted for four models and seen that the series are cointegrated. Cointegration coefficients are estimated by Breitung (2005) Two Step Least Squares method. The results indicate that 1% increase in human capital, average life expectancy, health expenditure per capita and education expenditure per capita improves per capita national income by 3.066, 8.186, 0.541 and 0.307 percent, respectively. Moreover, 1% increase in capital stock per capita affects national income per capita between 0.548% and 1.07% with respect to other independent variable in the models

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