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Paths to Success: The Relationship Between Human Development and Economic Growth

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  • Suri, Tavneet
  • Boozer, Michael A.
  • Ranis, Gustav
  • Stewart, Frances

Abstract

Summary This paper explores the two-way relationship between economic growth (EG) and human development (HD). We develop panel data strategies to estimate the strength of these relationships and find that HD plays an essential role in determining growth trajectories (our measure of sustained growth). Not only is HD a final product in the sense that it measures basic human well-being but it is also a critical input into EG. Our findings illustrate the empirical relevance of endogenous growth, and are consistent with threshold effect models. Our results imply that successful policy requires an early focus on HD, not only because of its direct impact but also because of its feedback effect on sustaining EG.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 4 (April)
Pages: 506-522

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:4:p:506-522

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: human development economic growth threshold models;

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Cited by:
  1. Smid, P. & Yao, L. & Hermes, N., 2006. "Capital Budgetting Practices: A comparative Study of the Netherlands and China," Research Report 06E02, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
  2. Gustav Ranis, Frances Stewart and Emma Samman, . "Country Patterns of Behaviour on Broader Dimensions of Human Development," QEH Working Papers qehwps154, Queen Elizabeth House, University of Oxford.
  3. John Serieux, 2007. "Managing the Exchange Rate Consequences of an MDG-Related Scale-up in HIV/AIDS Financing," Conference Paper 1, International Policy Centre for Inclusive Growth.
  4. Mukherjee, Sacchidananda & Chakraborty, Debashis, 2010. "Is there any relationship between Economic Growth and Human Development? Evidence from Indian States," MPRA Paper 22997, University Library of Munich, Germany.
  5. Baldacci, Emanuele & Clements, Benedict & Gupta, Sanjeev & Cui, Qiang, 2008. "Social Spending, Human Capital, and Growth in Developing Countries," World Development, Elsevier, vol. 36(8), pages 1317-1341, August.
  6. Alexander Cotte Poveda, 2011. "Economic development and growth in Colombia: An empirical analysis with super-efficiency DEA and panel data models," SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA 009080, CENTRO DE INVESTIGACIONES EN VIOLENCIA,INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
  7. Enrico Casadio Tarabusi & Giulio Guarini, 2013. "An Unbalance Adjustment Method for Development Indicators," Social Indicators Research, Springer, vol. 112(1), pages 19-45, May.

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