The Nexus between Financial Development and Human Development: The Case of Developing Countries

2020 ◽  
Vol 8 (2) ◽  
pp. 68
Author(s):  
Bilgehan Tekin
Keyword(s):  
Developing Countries ◽  
Private Sector ◽  
Human Development ◽  
Financial Development ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Causality Analysis ◽  
Development Index ◽  
Development Levels ◽  
The Relationship

The purpose of this study to examine the relationship between financial development and human development in the health and welfare dimensions of developing countries. This study aims to determine whether the financial developments of the countries have an effect on the basic human development of the individuals and whether human development indicators have an impact on financial development. In this study, the relationship between financial development and human development has been tried to be revealed by using data obtained from developing countries. Financial development levels of the countries were measured with the developed financial development index. The index is calculated by using M3 / GDP, private sector loans / GDP and loans to banks from private sector / GDP ratios. The human development index is calculated by considering various health indicators and GNP per capita. The data includes annual data for the period 1970-2016. Pedroni and Kao cointegration analysis and Dumitrescu & Hurlin panel causality analysis were performed in the study. According to the results of the study, the cointegration relationship was determined between the two variables. There is also a two-way causality between the variables.

scholarly journals The relationship between tourism and economic growth among BRICS countries: a panel cointegration analysis

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Haroon Rasool ◽  
Shafat Maqbool ◽  
Md. Tarique
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Panel Cointegration ◽  
Cointegration Analysis ◽  
International Tourism ◽  
Causality Analysis ◽  
Panel Ardl ◽  
Brics Countries ◽  
Inbound Tourism ◽  
The Relationship

AbstractTourism has become the world’s third-largest export industry after fuels and chemicals, and ahead of food and automotive products. From last few years, there has been a great surge in international tourism, culminates to 7% share of World’s total exports in 2016. To this end, the study attempts to examine the relationship between inbound tourism, financial development and economic growth by using the panel data over the period 1995–2015 for five BRICS (Brazil, Russia, India, China and South Africa) countries. The results of panel ARDL cointegration test indicate that tourism, financial development and economic growth are cointegrated in the long run. Further, the Granger causality analysis demonstrates that the causality between inbound tourism and economic growth is bi-directional, thus validates the ‘feedback-hypothesis’ in BRICS countries. The study suggests that BRICS countries should promote favorable tourism policies to push up the economic growth and in turn economic growth will positively contribute to international tourism.

scholarly journals Life Satisfaction and the Human Development Index Across the World

2021 ◽  
pp. 002202212110447
Author(s):  
Remi Yin ◽  
Anthony Lepinteur ◽  
Andrew E. Clark ◽  
Conchita D’Ambrosio
Keyword(s):  
Human Development ◽  
Cultural Sensitivity ◽  
Human Development Index ◽  
Predictive Power ◽  
Well Being ◽  
Annual Data ◽  
Subjective Well Being ◽  
Development Index ◽  
Rich Countries ◽  
The Relationship

We use annual data on over 150 countries between 2005 and 2018 to look at the relationship between subjective well-being (both cognitive and affective) and the Human Development Index (HDI). The HDI appears to be more closely related to cognitive than affective well-being. We also consider the relationships between the three HDI components (the Income, Health, and Education Indices) and well-being, and find that, on average, the Income Index has the strongest predictive power. Importantly, we find that the three HDI components only matter equally in Western and rich countries. Our analysis contributes to the discussion about cultural sensitivity in paradigms of societal development in two ways. We first show that differences in preferences toward development aims exist. Second, we propose a weighting procedure for a culturally-sensitive version of the HDI.

scholarly journals The Relationship of Economic Growth And Terrorism with the Human Development Index: A Causality Analysis on MENA Countries

2020 ◽  
Vol 11 ◽  
pp. 226-234
Author(s):  
Günay Özcan ◽  
Cigdem Karter
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Human Development Index ◽  
Causality Analysis ◽  
Panel Causality ◽  
Development Index ◽  
Mena Countries ◽  
Causality Relationship ◽  
Relationship Of ◽  
The Relationship

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

The relationship between financial development indicators and human development in India

2014 ◽  
Vol 41 (12) ◽  
pp. 1194-1208 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Human Development ◽  
Financial Development ◽  
Decomposition Analysis ◽  
Variance Decomposition ◽  
Annual Data ◽  
Content Type ◽  
Development Indicators ◽  
Long Run ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to examine the relationship between financial development indicators and human development in India using annual data from 1980-2012. Design/methodology/approach – The Ng-Perron unit root test is used to check for the order of integration of the variables. The long run relationship and short run dynamics are examined by implementing the ARDL bounds testing approach to co-integration. Granger’s non-causality test and variance decomposition techniques are also used to examine the impact of financial development indicators on human development. Findings – The results confirm a long run relationship among the variables. The results of granger non causality indicate that unidirectional causality runs from financial development indicators to human development index (HDI). The variance decomposition analysis shows that among all the financial indicators, broad money supply (M3) has the largest contribution to changes in human development in India. Research limitations/implications – The present study recommends for appropriate reforms in financial market to attain sustainable human development in India. The findings will be useful for India’s policy makers, in order to maintain the parallel expansion of financial development and human development. Originality/value – This paper is first of its kind to empirically examine the casual relationship between financial development indicators and human capital development proxied by HDI in India by using modern econometric techniques.

What Does Human Development Index Rating Mean in Terms of Individualism/Collectivism?

2003 ◽  
Vol 8 (2) ◽  
pp. 97-100 ◽  
Author(s):  
Maria José Sotelo ◽  
Luis Gimeno
Keyword(s):  
Human Development ◽  
Human Development Index ◽  
Principal Component ◽  
General Idea ◽  
Development Index ◽  
Low Levels ◽  
The Relationship

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.

The Relationship between Human Development and Economic Growth

2018 ◽  
Author(s):  
Frances Stewart ◽  
Gustav Ranis ◽  
Emma Samman
Keyword(s):  
Economic Growth ◽  
Human Development ◽  
Human Development Index ◽  
Econometric Analysis ◽  
Complementary Relationship ◽  
Development Index ◽  
The Relationship ◽  
Intervening Variables

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.

scholarly journals Do Environmental Stringency Policies and Human Development Reduce CO2 Emissions? Evidence from G7 and BRICS Economies

2021 ◽  
Vol 18 (13) ◽  
pp. 6727
Author(s):  
Funda Hatice Sezgin ◽  
Yilmaz Bayar ◽  
Laura Herta ◽  
Marius Dan Gavriletea
Keyword(s):  
United States ◽  
United Kingdom ◽  
Human Development ◽  
Co2 Emissions ◽  
United States Of America ◽  
The United States ◽  
Cointegration Analysis ◽  
Causality Analysis ◽  
The United Kingdom ◽  
The Impact

This study explores the impact of environmental policies and human development on the CO2 emissions for the period of 1995–2015 in the Group of Seven and BRICS economies in the long run through panel cointegration and causality tests. The causality analysis revealed a bilateral causality between environmental stringency policies and CO2 emissions for Germany, Japan, the United Kingdom, and the United States of America, and a unilateral causality from CO2 emissions to the environmental stringency policies for Canada, China, and France. On the other hand, the analysis showed a bilateral causality between human development and CO2 emissions for Germany, Japan, the United Kingdom, and the United States of America, and unilateral causality from CO2 emissions to human development in Brazil, Canada, China, and France. Furthermore, the cointegration analysis indicated that both environmental stringency policies and human development had a decreasing impact on the CO2 emissions.

scholarly journals The relationship between the Municipal Human Development Index and rates of violent death in Brazilian Federal Units

2016 ◽  
Vol 26 (2) ◽  
pp. 211 ◽  
Author(s):  
Lylla Winzer
Keyword(s):  
Human Development ◽  
Human Development Index ◽  
Violent Death ◽  
Raw Data ◽  
Development Index ◽  
The Relationship

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.

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