Analysis and Assessment of Human Capital in the Regions of Slovakia

Abstract

Introduction. The human capital of any country is a priority factor of national wealth and well-being, as it creates the necessary potential in knowledge, experience and skills of people. It also accelerates intellectual and technical progress in society and strengthens a country's international competitiveness. The international experience in human capital formation confirms the importance of intellectual potential, education quality, and the need to accumulate it. The major reason for concentrating the human capital is the growing role of the population`s social protection and providing favourable conditions for personal and overall country development. Aim and tasks. The aim of the study is to develop a comprehensive approach to the analysis and evaluation of human capital by identifying its main components in the Slovakian regions. The average multivariate method was used for the research, considering the dynamics of the economic development indicator. Results. Based on the proposed algorithm for human capital analysis, an assessment of the human capital development level in Slovakian regions was carried out using the average multivariate method, considering intellectual, educational, physical, science, and innovative capital. The calculations and comparative graphic analysis for the period 2018-2020 revealed a close connection between the dynamics of GDP and human capital development, which can be traced in each region of Slovakia. The change in GDP in the calculation period is proportional to the change in human capital assessment indicators. The synchronicity in the graph`s dynamics of the average multidimensional indicators of GDP and human capital in Slovakia for the period 2018-2020 is graphically substantiated. This confirms that the indicators selected for analysis and evaluation indicate a stable connection between investments in the individual components of human capital and the country's economic development. Conclusions. The analysis and assessment show that Slovakia has significant reserves for human capital development, which must be realized by implementing institutional changes both at the national and regional levels. This can be realized through the implementation of state programs to support youth, increase the level of funding, develop a business incentive system, and activate people’s creative potential. The methodology of the analysis and the proposed measures will help improve the level of human capital in the country. A set of measures to improve the efficiency of the use and development of a country's human capital was proposed.