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Economic growth and human development – what do time series data say for Sudan?

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  • Atif Awad
  • Ishak Yussof
  • Rahmah Ismail
  • Tamat Sarmidi

Abstract

This study examines United Nations Development Programme (UNDP)'s 1996 hypothesis regarding the existence of a two-way relationship between economic growth (EG) and human development (HD) using Sudanese time series data (1960–2012). The hypothesis suggests that there is a feedback effect between HD and EG. This implies that improving HD could enhance EG opportunities and vice versa. In this study, first we analyse the long-run cointegration relationships using the Autoregressive Distributed Lag (ARDL) approach. Then, to identify the short-run dynamic relationship between HD and EG, we employ the error correction model derived from the ARDL. The results show that in the long run, HD is positively related to EG through education and employment performance channels. At the same time, EG could positively improve the opportunities for the education of households and involvement in economic activities. The short-run dynamic estimation confirms that there is a bidirectional relationship between EG and HD. The overall findings support UNDP's 1996 hypothesis concerning the existence of a two-way relationship between EG and HD. The results also confirm that improving humanity in Sudan promotes not only HD but also overall economic development.

Suggested Citation

  • Atif Awad & Ishak Yussof & Rahmah Ismail & Tamat Sarmidi, 2014. "Economic growth and human development – what do time series data say for Sudan?," Middle East Development Journal, Taylor & Francis Journals, vol. 6(2), pages 151-174, July.
    • Handle: RePEc:taf:rmdjxx:v:6:y:2014:i:2:p:151-174
    DOI: 10.1080/17938120.2014.961329
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    Cited by:

    1. Gunay Ozcan & Cigdem Karter, 2020. "The Relationship of Economic Growth And Terrorism with the Human Development Index: A Causality Analysis on MENA Countries," Technium Social Sciences Journal, Technium Science, vol. 11(1), pages 226-234, September.
    2. Tsai-Yuan Huang & Po-Chin Wu & Shiao-Yen Liu, 2017. "Defense–Growth Causality: Considerations of Regime-Switching and Time- and Country-Varying Effects," Defence and Peace Economics, Taylor & Francis Journals, vol. 28(5), pages 568-584, September.

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