COMPARATIVE ANALYSIS OF THE STATE OF HUMAN CAPITAL: AZERBAIJAN AND INTERNATIONAL EXPERIENCE

Abstract

The aim of the research is to conduct a comparative analysis of investments in human capital and to identify the main factors that determine the differences in the level of human capital development between developed and developing countries. The study focuses on analyzing the components of the Human Capital Index (HCI) across selected countries, determining the impact of public expenditures on education and healthcare on human capital development, and developing forecast scenarios and strategic recommendations for Azerbaijan. The research is based on a multi-stage analytical approach, including descriptive analysis, comparative analysis of HCI components, and regression analysis. The data sources include the World Bank’s Human Capital Index for 2020 and statistical data on education and healthcare from Singapore, South Korea, Germany, and Azerbaijan. The analysis primarily utilizes indicators such as GDP per capita, public spending on education and healthcare, duration of schooling, and demographic indicators. The results reveal significant differences in the level of human capital development among the analyzed countries. With an HCI of 0.58, Azerbaijan lags considerably behind Singapore (0.88), South Korea (0.80), and Germany (0.75). This gap is mainly attributed to differences in the quality of education and the effectiveness of the healthcare system. The key findings indicate that the primary gaps in Azerbaijan are related to education quality and health outcomes. The regression analysis confirms the significant impact of public spending on education and healthcare on the development of human capital. The scientific novelty of the study lies in substantiating the synergistic effect of simultaneous investments in education and healthcare for developing economies. The practical significance of the research is to develop concrete policy recommendations aimed at increasing the efficiency of investments in human capital for developing countries, including short-term, medium term, and long-term measures for the modernization of education and healthcare systems.