Public Financing of Human Development in India: A Review

2021 ◽  
Vol 15 (1) ◽  
pp. 62-81
Author(s):  
Sacchidananda Mukherjee ◽  
Shivani Badola
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Public Investment ◽  
Public Financing ◽  
Economic Activities ◽  
Economic Opportunities ◽  
Goods And Services ◽  
Public Transfers ◽  
Distribution Of Resources

Role of public financing of human development (HD) is inevitable, especially for developing countries like India where access to resources and economic opportunities are not equitably distributed among people. Governments aim to achieve equity in distribution of resources through allocative and redistributive policies whereas macroeconomic stabilisation policies aim to achieve higher economic growth and stability in the price level. Expenditure policies of the governments envisage in delivering larger public goods and services to enable people to take part in economic activities by investing in human capital and infrastructure developments. Progressivity of the tax system helps in achieving equity by redistribution of resources among people. Being merit goods, expenditures on education, health, and poverty eradication make it a case for public investment which empowers people to improve human capital. The benefit of universal economic participation is expected to contribute in larger mobilisation of public resources over time. Lack of economic opportunities and earning a respectable income may increase dependence on public transfers which may reduce fiscal space of the governments to finance programmes to promote overall economic growth. The objective of this article is to review existing studies on public financing of HD in India and highlight emerging challenges.

scholarly journals Can Human Development Bonds Reduce the Agency Costs of the Resource Curse?

2019 ◽  
Vol 12 (1) ◽  
pp. 191-245
Author(s):  
Luke Sperduto
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Human Development ◽  
Empirical Research ◽  
Resource Curse ◽  
Sovereign Bond ◽  
Weak Institutions ◽  
Potential Benefits ◽  
Rich Countries ◽  
Significant Support

Abstract Especially in resource rich countries with weak institutions of governance, the interests of governments often diverge from those of their citizens and creditors. Sovereign bond contracts can potentially help align these interests, to the benefit of all parties, by indexing payment obligations to improvements in the health and education of the issuer’s citizenry. To that end, this Article proposes a Human Development Bond (HDB) with a variable coupon schedule that both insures issuers against recessions and incentivizes them to encourage investment in human capital when economic growth is strong. The potential benefits of such an instrument can only be realized, however, with significant support from the international community. Moreover, further empirical research is needed to calibrate the HDB’s coupon schedule to provide well-timed and appropriately sized debt relief.

scholarly journals Analisis Kausalitas Pertumbuhan Ekonomi, Indeks Pembangunan Manusia Dan Belanja Modal Di Provinsi.Jambi

2021 ◽  
Vol 5 (2) ◽  
pp. 565
Author(s):  
Yolanda Sari ◽  
Etik Winarni ◽  
Muhammad Amali
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Causal Relationship ◽  
Capital Expenditure ◽  
Secondary Data ◽  
Unit Roots ◽  
Causality Analysis ◽  
Economic Activities ◽  
Constant Prices

This research aims toaanalyze the causal relationshipbbetween several variables including economiccgrowth using the value of PDRB at constant prices, the variable humanndevelopment index (HDI) and capitaleexpenditures in Jambi Province during 2010-2020 period. The data used in this research is secondary data with a database obtained from BPS Jambi Province and Regional Financial Statistics Jambi Province. The method used in this research is the Granger causality analysis method, which was previously tested using unit roots and cointegration methods to see the long-termrrelationship betweenrresearch variables. The results showed that there was a long-term relationship between the research variables. Economic growth has a one-way causal relationship with HDI. Economic growth increases the supply of resources needed for human development which in turn will encourage better human development. The capital expenditure variable has a one-way causal relationship with the economic growth variables. The allocation of capital for the implementation of various community economic activities and become an economic stimulus in Jambi Province.

scholarly journals Spurring Economic Growth in Terms of Happiness, Human Development, Competitiveness and Global Innovation: the ASEAN Case

2021 ◽  
Vol 38 (1) ◽  
Author(s):  
Dio Caisar Darma Darma
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Cross Sections ◽  
Linear Regression Method ◽  
Economic Activities ◽  
Asean Member ◽  
Global Innovation ◽  
Sustainable Economic Growth ◽  
The Relationship

Happiness, human development, level of competitiveness, and capacity in innovation all play an important role in spurring long-term sustainable economic growth. This study presents the relationship between these factors—happiness, human development, competitiveness, and innovation in the ASEAN region—in how they influence economic growth. To date, there has been a lack of research on this specific issue, and thus it is an interesting and little-known one to study. Panel data were used comprising a combination of time series and cross-sections. The object of the study was ASEAN member countries using the multiple linear regression method. For the years of 2013–2019, we found that overall economic growth had a real impact. The results showed that human development and global innovation are two-way related to economic growth (positive and significant). Conversely, there was an insignificant influence of happiness and competitiveness on economic growth. Competitiveness, in particular, can reduce the level of economic growth. The policy considerations pursued by countries in ASEAN are through the respective governments’ strategic steps to improve the productivity of their populations, because human resources are needed not only as objects but actors in economic activities themselves in managing development.

Institutions, human capital and economic growth in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md Akther Uddin ◽  
Md Hakim Ali ◽  
Mansur Masih
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Human Capital ◽  
Quantile Regression ◽  
Dynamic System ◽  
Human Development ◽  
Interactive Effect ◽  
Critical Role ◽  
Generalized Method Of Moments ◽  
Content Type

Purpose This paper aims to study institutions, human capital and economic growth in developing countries. Design/methodology/approach The study applies dynamic system Generalized Method of Moments (GMM) and simultaneous quantile regression on a panel of 120 developing countries for the period of 1996-2014. Findings The findings show that human development and institutions do have a significant positive effect on economic growth. Interestingly, institutions and human development have a significant negative interactive effect on the economic growth of developing countries. This paper argues that incremental investment in human development would impact economic growth negatively in the presence of weak and dysfunctional institutions because additional stock tends to be employed in rent-seeking and socially unproductive activities. Research limitations/implications The policy makers should bear in mind the critical role played by the institutions and the initial stage of growth of a country in making their education and health policies more effective. Originality/value The most important novelty is the study of various transmission channels: political, economic and financial institutions through which human development affect economic growth in developing countries. This paper also studies the Islamic economic development concept and empirically investigates whether Muslim countries are different from their counterparts. Moreover, this study extends the existing empirical growth literature by simultaneously applying dynamic system GMM and quantile regression techniques.

scholarly journals Resource Rents, Human Development and Economic Growth in Sudan

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 99
Author(s):  
Elwasila Saeed Elamin Mohamed
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Life Expectancy ◽  
Human Development ◽  
Gdp Growth ◽  
Resource Rents ◽  
Long Run ◽  
Development Expenditure ◽  
Natural Resource Rents ◽  
The Government

This study investigates the relationship between natural resource rents, human development and economic growth in Sudan using co-integration and vector error correction modelling (VECM) over the period 1970–2015. Institutions proved to play a role in determining a difference in whether a country is cured or blessed by resource abundance. In the case of Sudan, no time series data is available on institutional quality and is therefore excluded from the analysis. The role of institutions and macroeconomic policies is captured by other variables included in the empirical model. Co-integration tests confirm the existence of a long run equilibrium relationship between resource rents, human development and economic growth in Sudan. Empirical evidence from the estimated VECM shows that economic growth is positively affected by resource rents and development expenditure but surprisingly negatively affected by life expectancy at birth in the short run. In the long run, resource rents, school enrolment, life expectancy and financial development have negative significant effects on economic growth. Only development expenditure is found to affect economic growth positively. Resource rents are found to weaken education and health levels and this is indirectly channeled into negative effects of resource rents on economic growth. These results suggest that the government has been neglecting investments to build up human capital necessary for inclusive growth. Long run Granger causality tests show a unidirectional causal relationship running from resource rents to GDP growth as well as from development expenditure to GDP growth. School enrollment, life expectancy and financial development are found to be negatively Granger causing GDP growth. Long run causal relationships reconfirm that a resource curse exists indirectly mediated by weak human capital. The study recommends that the government should manage natural resource rents with a policy framework supporting creation of a virtuous economic circle between human development and economic growth. If pursued, this would promote sustained, inclusive and equitable growth in Sudan.

Business Activity and Economic Growth: An Economic and Statistical Study

2020 ◽  
Vol 27 (6) ◽  
pp. 66-78
Author(s):  
A. A. Frenkel ◽  
B. I. Tikhomirov ◽  
Y. V. Sergienko ◽  
A. A. Surkov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Activity Index ◽  
Objective Assessment ◽  
Accurate Determination ◽  
Business Activity ◽  
Economic Activities ◽  
Goods And Services ◽  
Socio Economic Development ◽  
The Impact

This publication reflects the results of the author’s research on improving the domestic statistical and methodological tools used in the analysis and forecasting of the Russian economy. In this regard, the main features of the formation and application of the Business Activity Index for basic spheres of the economy of the Institute of Economics of the Russian Academy of Sciences (hereinafter, the index of business activity) are shown and substantiations of its individual advantages are given in comparison with the index of output of goods and services for the basic types of economic activities of Rosstat (hereinafter, the release of goods and services). The authors provide evidence that despite a number of positive qualities of the applied methodology for constructing the index of output of goods and services, the business activity index, according to the authors of the article, provides a more objective assessment of macroeconomic dynamics, since it includes additional indicators reflecting financial and social aspects of economic development. It is proved that the main advantages of the business activity index are manifested in a more accurate determination of the depth of crisis phenomena in socio-economic development, as well as in determining the timing of the onset and overcoming of these negative processes. The characteristics of the macroeconomic indicators that make up the business activity index are given. Methods for calculating the weights of indicators characterizing the level of business activity in various spheres of the national economy, as well as methods for determining changes in this level are considered. Changes in the dynamics of these weights are analyzed. Ways of more efficient use of business activity indices in the practice of accounting, forecasting and management of socio-economic development are proposed. The conclusion is substantiated that it is advisable to use the business activity index for macroeconomic analysis, forecasting and strategic planning, which will make it possible to more accurately assess the impact of the implementation of national projects and the social package of the message of the President of the Russian Federation on economic growth and increase the efficiency of using business activity tools in the practice of public administration of social economic development of the country.

Human Capital Model as a Strategy for Development of Weaving Home Industry in Sambas District of West Kalimantan

2017 ◽  
Vol 2 (3) ◽  
pp. 11-19
Author(s):  
Jamaliah Jamaliah
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Theory Development ◽  
Secondary Data ◽  
Population Data ◽  
Jel Classification ◽  
Industrial Workers ◽  
Economic Activities ◽  
Capital Theory ◽  
Human Capital Model

Objective - Goals of economic development is to increase economic growth, increase employment opportunity, equalize income distribution, and increase standard of living which will reach out community welfare. Therefore, to achieve all those goals, programs which can enhance economic activities with high intensity are needed. It will create more job opportunities and higher income, which mean poverty can be minimalized. One of the efforts to increase economic growth and public income is to develop human capital. The research is aimed to create the development of human capital model which includes training, skill, experience, and other supports particularly creativity and innovation and regarding enhancing welfare of weaving industry's workers. Methodology/Technique - This research used quantitative and qualitative methods with primary and secondary data which were taken by interviews, questionnaires, and observation. The research took place in several villages/districts in Sambas Regency, those were Jagur, Tumuk Manggis, Tanjung Mekar, Sumber Harapan, and Sajad districts. Considering that population data was not available accurately, respondents were selected based on purposive method and was adapted with the research goal. Findings - The research showed that human capital model to develop weaving industry was very likely to be done through comprehensive development by stakeholders in Sambas Regency (government and public figures), higher education institutions, and companies (business group) so that labour income could increase. Novelty - This developed model, then, is one of means that can be used to improve welfare of weaving industrial workers so that it can be new finding for human capital theory development. Type of Paper: Empirical Keywords: Human Capital, Household Weaving Industry Development, Stakeholders. JEL Classification: J01, J08, R11.

The composition of productive government expenditure

2008 ◽  
Vol 1 (1) ◽  
pp. 57-83 ◽  
Author(s):  
Goncalo Monteiro ◽  
Stephen J. Turnovsky
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Government Spending ◽  
Public Investment ◽  
Government Expenditure ◽  
Physical Capital ◽  
Content Type ◽  
Trade Offs ◽  
Long Run ◽  
Productive Government Spending

PurposeRecent research supports the role of productive government spending as an important determinant of economic growth. Previous analyses have focused on the separate effects of public investment in infrastructure and on investment in education. This paper aims to introduce both types of public investment simultaneously, enabling the authors to address the trade‐offs that resource constraints may impose on their choice.Design/methodology/approachThe authors employ a two‐sector endogenous growth model, with physical and human capital. Physical capital is produced in the final output sector, using human capital, physical capital, and government spending on infrastructure. Human capital is produced in the education sector using human capital, physical capital, and government spending on public education. The introduction of productive government spending in both sectors yields an important structural difference from the traditional two‐sector growth models in that the relative price of human to physical capital dynamics does not evolve independently of the quantity dynamics.FindingsThe model yields both a long‐run growth‐maximizing and welfare‐maximizing expenditure rate and allocation of expenditure on productive capital. The welfare‐maximizing rate of expenditure is less than the growth‐maximizing rate, with the opposite being the case with regard to their allocation. Moreover, the growth‐maximizing value of the expenditure rate is independent of the composition of government spending, and vice versa. Because of the complexity of the model, the analysis of its dynamics requires the use of numerical simulations the specific shocks analyzed being productivity increases. During the transition, the growth rates of the two forms of capital approach their common equilibrium from opposite directions, this depending upon both the sector in which the shock occurs and the relative sectoral capital intensities.Research limitations/implicationsThese findings confirm that the form in which the government carries out its productive expenditures is important. The authors have retained the simpler, but widely employed, assumption that government expenditure influences private productivity as a flow. But given the importance of public investment suggests that extending this analysis to focus on public capital would be useful.Originality/valueTwo‐sector models of economic growth have proven to be a powerful tool for analyzing a wide range of issues in economic growth. The originality of this paper is to consider the relative impact of government spending on infrastructure and government spending on human capital and the trade‐offs that they entail, both in the long run and over time.

scholarly journals Impact of human capital on economic growth: A case study of Pakistan

2021 ◽  
Vol 2 (2) ◽  
pp. 64-69
Author(s):  
Raheela Khatoon ◽  
Iqbal Javed ◽  
Muhammad Munawar Hayat
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Infant Mortality ◽  
Human Development ◽  
Human Development Index ◽  
Time Series Data ◽  
Infant Mortality Rate ◽  
Series Data ◽  
Development Index ◽  
The Impact

A country is prosperous if it has efficient development programs. Human capital contains resources like education, health, training, skills etc. For economic progress these qualities are very vital. Basic objective of this research is to explain the impact of human capital on growth and development of economics sector of the Pakistan. Because today in the developing countries, human development and growth has becomes the burning issues. To analyse the association between human capital and economic growth, used GDP as a dependent variable. This study further use Human development index as independent variable. Proxy of human development index consist of education index, health, fertility, infant mortality, life expectancy and sanitation. Our focus will be more on the education. Time series data for the years 1990-2019 were used. ARDL model was used by incorporating the human capital formation with other explanatory variables. The findings shows that the human capital has positive and significant impact on growth and the negative influence on the population and infant mortality rate.

scholarly journals ОЦЕНКА ВЛИЯНИЯ СФЕРЫ ОБРАЗОВАНИЯ НА ЭКОНОМИЧЕСКОЕ РАЗВИТИЕ СТРАНЫ

2019 ◽  
pp. 41-47
Author(s):  
Ахмедова Эсмира М.
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Comparative Analysis ◽  
Human Development ◽  
Human Development Index ◽  
Public Investment ◽  
Development Index ◽  
Social And Economic Development ◽  
The World ◽  
Socio Economic Development

This article indicates the results a comparative analysis the financing of the advanced countries of the world and similar indicators of Azerbaijan during the period active development of education and modernization of the economy. The methodology work is the fundamental works of foreign scientists, such as reports of the Organization for Economic Cooperation and Development (OECD), human development index indicators in the field of determining and assessing the dependence of socio-economic development on public investment in education. It is displayed that Azerbaijan has resources and potential for growth of human capital, for social and economic development of the country. On the basis of the research, some conclusions and proposals are presented that contribute to improving the prospects for the economic development of Azerbaijan.

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