ENHANCING HUMAN CAPITAL POTENTIAL IN THE REGION: EVIDENCE FROM KHOREZM REGION

Abstract

This study examines the role of human capital in enhancing regional economic performance, with a specific
focus on the Khorezm region of Uzbekistan. In the context of the ongoing transition toward a knowledge-based economy,
human capital has emerged as a key driver of sustainable economic growth. The research adopts a theoretical and
empirical approach, combining insights from human capital theory and endogenous growth models with panel data
analysis covering 10 districts over the period 2010-2025.
The empirical analysis, based on an Ordinary Least Squares (OLS) model, reveals that human capital—measured through
education, healthcare, and innovation indicators—has a positive and statistically significant impact on regional economic
output. The findings also highlight the complementary roles of physical capital, institutional quality, and innovation activity
in amplifying the effects of human capital. At the same time, the study identifies several structural constraints, including skill
mismatches, limited labor market diversification, underdeveloped innovation infrastructure, and institutional inefficiencies,
which hinder the effective utilization of human capital.
The results suggest that improving the quality and relevance of education, strengthening healthcare systems, promoting
innovation ecosystems, and enhancing institutional capacity are essential for unlocking the full potential of human capital.
The study concludes that a comprehensive and integrated policy approach is required to ensure sustainable and inclusive
regional development.