Human Capital--Economic Growth Nexus in the Former Soviet Bloc

This study analyses the role and impact of higher education on per capita economic growth in the Former Soviet Bloc. It attempts to estimate the significance of educational levels for initiating substantial economic growth that now takes place in these two countries. This study estimates a system of linear and log-linear equations that account for different time lags in the possible impact of higher education on economic growth. The results indicate that an increase in access of population to higher education brings positive results for the per capita GDP growth in the long term. Increasing the number of college-educated specialists leads to sustainable economic growth. Apparently, background for the 2000-2005 rapid economic growth in Ukraine and in the Russian Federation was laid down in early 1990s. This contradicts commonly accepted perception about the crisis decade of 1990s in the former Soviet Bloc. (Contains 16 tables, 4 figures, and 8 appendices.)