Financial-digital investments in human capital as a factor of sustainable economic growth: assessment, dynamics and impact of artificial intelligence (a Kazakhstan case study)

Economic Annals-XXI: Volume 213, Issue (1-2), Pages: 18-29

Citation information
Assanova, A., Issaeva, A., Dzhubalieva, Z., Arzikulova, R., & Uchkampirova, A. (2025). Financial-digital investments in human capital as a factor of sustainable economic growth: assessment, dynamics and impact of artificial intelligence (a Kazakhstan case study). Economic Annals-XXI, 213(1-2), 18-29. doi: https://doi.org/10.21003/ea.V213-02

Aiman Assanova
MA (Economics),
Senior Lecturer,
Kazakh National Pedagogical University named after Abai
13 Dostyk Ave., Almaty, 050010, Republic of Kazakhstan
aiman_assanova@mail.ru
ORCID ID: https://orcid.org/0000-0001-7690-9702

Ainur Issaeva
PhD (Economics),
Kazakh National Pedagogical University named after Abai
13 Dostyk Ave., Almaty, 050010, Republic of Kazakhstan
Issaeva_ainur@mail.ru
ORCID ID: https://orcid.org/0000-0001-5757-4628

Zora Dzhubalieva
PhD (Economics),
Kazakh National Pedagogical University named after Abai
13 Dostyk Ave., Almaty, 050010, Republic of Kazakhstan
zora.dzhubalieva@gmail.com
ORCID ID: https://orcid.org/0009-0009-9829-5911

Rakhat Arzikulova
PhD (Economics),
Associate Professor,
Kazakh National Pedagogical University named after Abai
13 Dostyk Ave., Almaty, 050010, Republic of Kazakhstan
rakha0212@mail.ru
ORCID ID: https://orcid.org/0009-0007-1745-3400

Aigul Uchkampirova
PhD (Economics),
Associate Professor,
L. N. Gumilyov Eurasian National University
2 Satpayev Str., Astana, 010008, Republic of Kazakhstan
Aigulya82@gmail.com
ORCID ID: https://orcid.org/0000-0002-7887-1696

Financial-digital investments in human capital as a factor of sustainable economic growth: assessment, dynamics and impact of artificial intelligence (a Kazakhstan case study)

Abstract. Introduction. This study investigates the relationship between financial-digital investments in human capital and sustainable economic growth in Kazakhstan from 2015-2023, with particular emphasis on artificial intelligence integration. The research addresses critical gaps in understanding how emerging economies leverage digital transformation for human capital development while maintaining economic sustainability, focusing specifically on Kazakhstan’s transition from resource-dependent to knowledge-based economic growth through strategic coordination between government policy, private sector innovation, and international partnerships.

Methods. A comprehensive mixed-methods approach combining advanced econometric techniques with qualitative policy analysis was employed. Data sources included macroeconomic indicators from the Ministry of National Economy, firm-level data from 156 companies, and individual-level educational outcomes from 12,840 respondents across 16 administrative regions. System GMM estimators addressed endogeneity concerns while instrumental variables leveraged exogenous variation in oil prices and technology transfer agreements. Primary data collection involved structured interviews with 45 senior executives and government officials, yielding 576 quarterly observations for core analysis.

Results. Kazakhstan achieved internet penetration of 90.9% and digital literacy rates of 92% by 2023, while establishing Central Asia’s AI productivity leadership with developers achieving 17.1% productivity gains through English-language AI tools versus 13.8% for local languages. Digital transactions increased from 7% in 2014 to 89% in 2024, online banking adoption rose from 25% to nearly 100%, and the IT services sector grew to 772 billion tenge by 2022 with 23.4% growth in Q1 2023. The fintech sector captured 40% of venture capital deals by 2023, while Astana Hub expanded to over 1,600 resident companies. The digital economy’s share of GDP increased to 6.1% by 2024, with educational technology integration reaching 85.4% in higher education and 82.1% in vocational training.

Discussion. The findings demonstrate that financial-digital investments successfully transformed Kazakhstan’s economic structure from resource-dependent to knowledge-based growth patterns. Regional disparities persisted with 90.5% of IT services concentrated in Almaty and Nur-Sultan, while language barriers significantly affected AI effectiveness. The transformation validated theoretical frameworks regarding emerging economy technological leapfrogging potential while highlighting the critical importance of integrated approaches combining infrastructure development, human capital enhancement, and institutional reform within coherent strategic frameworks.

Scientific Novelty. This research introduces the first comprehensive empirical analysis of financial-digital investments in human capital for an emerging economy context, developing novel measurement frameworks for digital human capital that incorporate AI literacy alongside traditional educational metrics. The study establishes causal relationships between different types of digital investments and growth outcomes while controlling for resource sector dynamics, advancing theoretical understanding of digital transformation in resource-rich emerging markets and providing quantitative evidence for AI’s role in human capital enhancement.

Practical Implications. The findings provide evidence-based guidance for emerging economy policymakers designing digital transformation strategies that generate broadly shared economic benefits. The research demonstrates the effectiveness of coordinated public-private investment approaches while highlighting the need for balanced regional development strategies and language-sensitive AI development. The study offers specific insights for multilingual countries seeking to accommodate linguistic diversity while maintaining technological competitiveness, with direct relevance for Central Asian economies and other resource-rich developing countries pursuing economic diversification through digital transformation.

Keywords: Human Capital Investment; Digital Transformation; Artificial Intelligence; Economic Growth; Kazakhstan; Sustainable Development; Financial Technology

JEL Classification: O15; O33; J24; O53; O57

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

Data Availability Statement: The dataset is available from the authors upon request.

DOI: https://doi.org/10.21003/ea.V213-02

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Received 25.10.2024
Received in revised form 19.11.2024
Accepted 23.11.2024
Available online 26.02.2025