BAKU, Azerbaijan, October 26. Azerbaijan can increase the growth of human capital through reforms that increase the average number of years of education, Trend reports via the "Azerbaijan. Country Economic Memorandum" publication from the World Bank (WB).
According to the report, an educational reform aimed at increasing the quality and quantity of schooling would boost the overall GDP growth of Azerbaijan by about 0.4 percentage points by 2050.
Although, as the WB noted, there is little room for this, because Azerbaijan is already among the countries with the highest years of schooling whatsoever.
"Countries with similar levels of schooling have average human capital growth rates of between 0 and 1 percent over the next 20 years. In this case, the scenario assumes that a major educational reform (focused on both quality and quantity) enacted today would reach its full impact by 2035, raising annual human capital growth to 1 percent until 2050," the report said.
The WB expects that in the model, increasing human capital growth by one percentage point improves the quality of the labor force, boosting non-energy GDP growth by 0.7 percentage points (through labor intensity in the production function).
As the WB believes, the overall impact of human capital increases over time as the non-energy sector expands.
"As a result, such an educational reform could boost total GDP growth by 0.3 percentage points in the 2030s, rising to 0.6 percentage points in the 2040s. The effect is also larger in the non-energy economy where the reform could boost annual growth by 0.5 percentage points in the 2030s and by 0.8 percentage points in 2040s," the report added.
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