The Relationship between Human Development and Economic Growth

Author(s):  
Frances Stewart ◽  
Gustav Ranis ◽  
Emma Samman

This chapter explores the interactions between economic growth and human development, as measured by the Human Development Index, theoretically and empirically. Drawing on many studies it explores the links in two chains, from economic growth to human development, and from human development to growth. Econometric analysis establishes strong links between economic growth and human development, and intervening variables influencing the strength of the chains. Because of the complementary relationship, putting emphasis on economic growth alone is not a long-term viable strategy, as growth is likely to be impeded by failure on human development. The chapter classifies country performance in four ways: virtuous cycles where both growth and human development are successful; vicious cycles where both are weak; and lopsided ones where the economy is strong but human development is weak, or conversely ones where human development is strong but the economy is weak.

2021 ◽  
Vol 8 (12) ◽  
pp. 663-685
Author(s):  
Marisa Br Sinuraya ◽  
Raina Linda Sari ◽  
Irsad Lubis

The research aims to examine and analyze effects of economic growth, human development index (HDI), population, unemployment, and investment on poverty levels in the North Sumatra Province. The research uses quantitative data type, while the data source is obtained from secondary data in the quarterly form of 2010-2019. The data are analyzed with the model of Autoregressive Distributed Lag (ARDL) analysis. The results of ARDL analysis of economic growth variables and HDI have negative and significant effects on poverty levels in the short term and long term. Unemployment variable has a significant positive effect on poverty levels in the short term however insignificant in the long term and investment variable has an insignificant positive effect on the poverty level in the short and long term. Keywords: Economic Growth, HDI, Population, Unemployment, Investment, Poverty.


2018 ◽  
Vol 3 (2) ◽  
pp. 71
Author(s):  
Muslikhati Muslikhati

Human development is one of the indicators of the success of economic growth. The good quality of human resources goes hand in hand with economic growth, this is because resources as part of the factor of production are the most valuable assets in the economic activities of a country. This study aims to determine and analyze the causality of economic growth towards the quality of human resources. The method used in this study was using the Granger Causality method. Granger Causality Approach is used to measure the strength of the relationship between two or more variables, or it can also be used as a tool to see the direction of the relationship between independent variables and the dependent variable. The variable Human Development Index (HDI) as the dependent variable and per capita income variable as the independent variable. From this study it was concluded that the granger causality test on the proposed research model states that there is no causality relationship between two independent variables and the dependent variable, but significantly the Indonesian economic growth variable has a one-way relationship with the human development index (HDI).Human development is one of the indicators of the success of economic growth. The good quality of human resources goes hand in hand with economic growth, this is because resources as part of the factor of production are the most valuable assets in the economic activities of a country. This study aims to determine and analyze the causality of economic growth towards the quality of human resources. The method used in this study was using the Granger Causality method. Granger Causality Approach is used to measure the strength of the relationship between two or more variables, or it can also be used as a tool to see the direction of the relationship between independent variables and the dependent variable. The variable Human Development Index (HDI) as the dependent variable and per capita income variable as the independent variable. From this study it was concluded that the granger causality test on the proposed research model states that there is no causality relationship between two independent variables and the dependent variable, but significantly the Indonesian economic growth variable has a one-way relationship with the human development index (HDI).


2020 ◽  
Vol 11 ◽  
pp. 226-234
Author(s):  
Günay Özcan ◽  
Cigdem Karter

Examining the human development of societies is one of the important economic policy practices of recent times. Therefore, economies steer the sub-components of human development and their policies implemented by researching the factors that affect such sub-components. In this context, the aim of this study is to examine the relationship between economic growth and terrorism with human development in 12 selected MENA countries in the period of 2002-2017 by the panel causality method. The findings obtained as a result of the panel causality analysis show that both terrorism and economic growth have bidirectional causality with the human development index throughout the panel. A causality relationship has also been found in many countries on a country basis


2003 ◽  
Vol 8 (2) ◽  
pp. 97-100 ◽  
Author(s):  
Maria José Sotelo ◽  
Luis Gimeno

The authors explore an alternative way of analyzing the relationship between human development and individualism. The method is based on the first principal component of Hofstede's individualism index in the Human Development Index rating domain. Results suggest that the general idea that greater wealth brings more individualism is only true for countries with high levels of development, while for middle or low levels of development the inverse is true.


2016 ◽  
Vol 26 (2) ◽  
pp. 211 ◽  
Author(s):  
Lylla Winzer

Because countries with the highest Human Development Index (HDI) have low rates of violence, it is common to assume that the increase of HDI may correspond with lower rates of violence in a country. This study examined the relationship between the Municipal Human Development Index (MHDI) and violent deaths in the Brazilian States between 1991 and 2010. We tested whether the increase of MHDI indirectly reduces violence or whether the reduction of violence predicts higher MHDI in later years. The raw data were obtained from three sources online, Atlasbrasil, IPEAdata and Map of violence. The analyses do not support the assumption that the increase of MHDI leads to a reduced level of violence. However, there are indications that the decrease of homicides over the years results in improved MHDI rates in 2010. The results suggest that taking measures aimed at development does not automatically imply a lower level of violence, but fi ghting against violence may increase MHDI.


2003 ◽  
Vol 31 (1) ◽  
pp. 55-59 ◽  
Author(s):  
Maria José Sotelo ◽  
Luis Gimeno

The authors explore an alternative way of analyzing the relationship between development, migration and psychology. The method is based on the first principal component of national net immigrants'data in the Human Development Index rating domain. Results show that the main sources of emigrants are countries with moderate development and the main sink countries are ranked from Human Development Index Rating 10 to 30. This could be in part due to a psychological reason: “If one is poor among poor, incentives to migrate might be lower than if one is poor among (relatively) rich”.


Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 681
Author(s):  
Muhammad Fajar ◽  
Zul Azhar

This research aims to know and analyze determine of corruption and the human development index to economic growth in Southeast Asian countries. This research use panel least square and Fixed Effect Model. The estimation result should that corruption has a possitive and significant effect on economic growth in Southeast Asian countries and the human development Index has a possitive and significant effect on economic growth in Southeast Asian countries. From the result of this research, to increase economic growth, the government in SoutheastAsian countries must strengthen the bureaucratic and legal institutions of a country,increase the role of the government or related agencies in monitoring and crackingdown on corruption that results in lossof government productivity and allocating resources appropriately so that the creation of peace and prosperity among the countries in Southeast Asian. Keywords: Economic Growth, Corruption, Human Development Index


2018 ◽  
Vol 14 (2) ◽  
pp. 197-211
Author(s):  
Arfah Habib Saragih

Abstract: An Analysis of Local Taxes Revenue’s Effect on Human Development Index. Regional tax reform in Indonesia has been ongoing for approximately twenty years. The aim of the tax reform is to increase regional revenues from tax which will be used society’s welfare through regional development, which can be measured by Human Development Index (HDI). This study aims to analyse the effect of local tax revenue on HDI in Indonesia. Quantitative research method is used with unit of analysis of thirty-four provinces in Indonesia in 2013-2016, with a total of 134 observations. Secondary data is processed through panel data regression using random effect method. This study finds that local tax revenue has a significant positive effect on HDI. This study also finds that economic growth and unemployment rates have no significant effect on HDI, while gini ratio has a significant negative effect on HDI. Keywords: local taxes, human development index, tax reform, economic growth, gini ratioAbstrak: Analisis Pengaruh Penerimaan Pajak Daerah Terhadap Indeks Pembangunan Manusia. Reformasi perpajakan daerah di Indonesia sudah berlangsung selama kurang lebih dua puluh tahun. Tujuan dari reformasi perpajakan tersebut adalah untuk meningkatkan penerimaan daerah dari sektor perpajakan yang akan digunakan untuk kemakmuran rakyat melalui pembangunan daerah yang dapat diukur salah satunya dengan Indeks Pembangunan Manusia (IPM). Penelitian ini bertujuan untuk menguji pengaruh penerimaan pajak daerah terhadap IPM di Indonesia. Metode riset yang digunakan adalah metode kuantitatif dengan unit analisis tiga puluh empat provinsi di Indonesia pada periode 2013-2016 dengan total 134 observasi. Data sekunder diolah melalui regresi data panel dengan metode random effect. Penelitian ini menemukan bahwa penerimaan pajak daerah berpengaruh positif signifikan terhadap IPM. Temuan lain yang diperoleh dari penelitian ini adalah pertumbuhan ekonomi dan tingkat pengangguran tidak berpengaruh signifikan terhadap IPM, sedangkan rasio gini berpengaruh negatif signifikan terhadap IPM. Kata kunci: Kata Kunci: pajak daerah, indeks pembangunan manusia, reformasi perpajakan, pertumbuhan ekonomi, rasio gini


2019 ◽  
Vol 16 (1) ◽  
Author(s):  
M Iksan Umsohy

This study aims to test and analyze: 1 Influence of Capital Expenditure Allocation to Economic Growth, 2 Influence of Allocation of Capital Expenditure and Economic Growth to Human Development Index, 3 Influence of Capital Expenditure Allocation, Economic Growth and Human Development Index to Poverty in Districts / Cities in North Maluku Province. The research method used is panel data regression. The results of this research founded that model 1 influence of Capital Expenditure Allocation have significant influence to Economic Growth. Model 2 Capital Expenditure Allocation has a positive but insignificant influence on the Human Development Index even though the increase is not significant while Economic Growth has positive and significant effect on Human Development Index while model 3 allocation of Capital Expenditure has positive and significant influence to Poverty. While Economic Growth has a negative impact on Poverty, Furthermore, Human Development Index (HDI) as an indicator of strengthening of human resources has a negative and significant influence on Poverty level in 9 regencies of North Maluku Province.  Keywords: Allocation of Capital Expenditure, Growth, Human Development Index, Poverty  


2016 ◽  
Vol 2 (2) ◽  
pp. 251
Author(s):  
Sabah Faihan Mahmood ◽  
Yassen Taha Mahmood

      Human Development aims to   enlarge choices in front of people by improving the level of health, education, and income; this means that this process will upgrade both the economic and social development.In other words, human development aimes to raise the average of age and this requires the advancement of the health aspect, raise the level of knowledge and this requires the advancement of  the educational aspect of all kinds., and raise the standard of living, and this requires the advancement of the economic aspect by providing the necessary jobs and promote economic activities.      The study focus on the relationship between education and human development which has great importance as a mean to determine the impact of education on human development. The research seeks to achieve a set of objectives, including:        Review  the concept of human development and its basic elements, shed light on the reality of development in Iraq and follow the path of its development, and find out the role of education in influencing human development through the changes taking place in it and its impact on increase or decrease  human development index during the period of the research.       The research found set of   results, the most important were the important effect of the education index on the level of human development index represented by HDI.  Iraq had a good educational system in the eighties and nineties, reaching good education index value for the year (1990) which was (0.890), making the human development index in Iraq in the highest level and the value of the Human Development Index (0.759) in the first report issued by the United Nations in the year (1990). when the education index fall back there was negatively impact on the value of human development  index in Iraq Directory, so when the education index value became (0.721) , the value of the Human Development Index  was  (0.590) in the year 2011 . This means that the value of the human development index decrease in recent years, although of improvement in the level of health, and the average per capita GDP in Iraq, and this illustrates the significant role of education on the human development process.


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