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Income elasticity of human development in ASEAN countries

Author

Listed:
  • Mark Fruin

    (Illinois State University)

  • Desi Peneva

    (Illinois State University)

  • Rati Ram

    (Illinois State University)

Abstract

Following the extensive literature on income (growth) elasticities of poverty in developing countries, this paper explores the magnitude of improvement in a country's human development as its per capita income increases. The response is measured in terms of the income elasticity of Human Development Index (HDI) published by United Nations Development Programme (UNDP). The group of ASEAN countries is studied, and the 20-year period 1990-2010 is covered. The main outcome of the exercise is that income elasticities of human development vary from a low of 0.20 to 0.25 for Cambodia, Malaysia, Myanmar, Singapore and Vietnam to a high of over 0.50 for Indonesia, indicating that there is a relatively huge variation in the rate at which income growth translates into human development even in this well-integrated group.

Suggested Citation

  • Mark Fruin & Desi Peneva & Rati Ram, 2013. "Income elasticity of human development in ASEAN countries," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(4), pages 13-20, December.
    • Handle: RePEc:chi:journl:v:2:y:2013:i:4:p:13-20
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    References listed on IDEAS

    as
    1. Gustav Ranis & Frances Stewart, 2012. "Success and Failure in Human Development, 1970--2007," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(2), pages 167-195, May.
    2. Rati Ram, 2013. "Income elasticity of poverty in developing countries: updated estimates from new data," Applied Economics Letters, Taylor & Francis Journals, vol. 20(6), pages 554-558, April.
    3. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    4. Chakrangi Lenagala & Rati Ram, 2010. "Growth elasticity of poverty: estimates from new data," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(12), pages 923-932, October.
    5. Jeeranan Techanan & Komsan Suriya, 2012. "Effect of income distribution on poverty reduction after the Millennium," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(4), pages 169-179, December.
    6. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191, December.
    7. Dustin Chambers & Shatakshee Dhongde, 2011. "A Non‐Parametric Measure Of Poverty Elasticity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(4), pages 683-703, December.
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    Cited by:

    1. Wang, Zhaohua & Bui, Quocviet & Zhang, Bin & Nawarathna, Chulan Lasantha K. & Mombeuil, Claudel, 2021. "The nexus between renewable energy consumption and human development in BRICS countries: The moderating role of public debt," Renewable Energy, Elsevier, vol. 165(P1), pages 381-390.
    2. durongkaveroj, wannaphong, 2014. "Growth or development: experience from Latin America," MPRA Paper 54481, University Library of Munich, Germany, revised 16 Mar 2014.
    3. Wang, Zhaohua & Bui, Quocviet & Zhang, Bin, 2020. "The relationship between biomass energy consumption and human development: Empirical evidence from BRICS countries," Energy, Elsevier, vol. 194(C).

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    More about this item

    Keywords

    Human development; income growth; income elasticity of human development; ASEAN Journal: The Empirical Econometrics and Quantitative Economics Letters;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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