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Calculation of the Human Development Index for Northern Cyprus Using Economic Measurements from the Post-Conflict Period

Author

Listed:
  • Ali Cevat Taşıran

    (Middle East Technical University, Northern Cyprus Campus, Department of Economics)

  • Ceylan Ünver

    (Middle East Technical University, Northern Cyprus Campus, Department of Economics)

Abstract

Development has always been treated as an economic phenomenon and linked to economic growth. Amartya Sen’s “capabilities” approach (Sen, 1985) introduced the concept of “human development” as progress towards greater societal well-being. The Human Development Index, the HDI, is a summary measure of average achievement in key dimensions of life: a long and healthy lifespan, being knowledgeable, and having a decent standard of living. The HDI relies on various proxies to demonstrate key capabilities: i.e., access to health, education, and goods. The HDI is the geometric mean of these three-dimensional indices. The HDI has been calculated by the United Nations Development Program (UNDP) since 1990 and serves as a measure of human well-being; it ranks countries on a scale between zero and one. Northern Cyprus (herein referred to as the Turkish Republic of Northern Cyprus, or the TRNC) has been ignored in such calculations, although the HDI has been applied to similar territories. Thus, the purpose of this paper is to calculate the HDI for the TRNC using observed series during its post-conflict era. At the same time, we discuss the Granger Causality of HDI in Northern Cyprus and Turkey. The finding indicates that the HDI of the TRNC has the ability to predict the HDI of Turkey, while its reverse is not true. The paper also examines the relationships between HDI and GNI according to separate Fixed-Effect Panel Models and Seemingly Unrelated Regression (SUR) Equations of HDI and GNI.

Suggested Citation

  • Ali Cevat Taşıran & Ceylan Ünver, 2016. "Calculation of the Human Development Index for Northern Cyprus Using Economic Measurements from the Post-Conflict Period," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 5(3), pages 1-20, September.
    • Handle: RePEc:tek:journl:v:5:y:2016:i:3:p:1-20
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    References listed on IDEAS

    as
    1. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
    2. UNDP Africa, 2016. "Africa Human Development Report 2016 Accelerating Gender Equality and Women’s Empowerment in Africa," UNDP Africa Reports 267638, United Nations Development Programme (UNDP).
    3. Frederik Booysen, 2002. "An Overview and Evaluation of Composite Indices of Development," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 59(2), pages 115-151, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Human Development Index; Granger Causality; Fixed-Effect Panel Data Models; SUR Estimates;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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