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Economic growth and human development: Evidence from Zambia

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  • Sydney Chikalipah
  • Daniel Makina

Abstract

In this paper, we examine the two‐way relationship between economic growth and human development in Zambia over the period 1970 to 2015. By applying the cointegration and vector error correction model techniques, our estimates demonstrate, in the first instance, that economic growth and human development are cointegrated. Second, there is no evidence of two‐way causal effect observable between economic growth and human development in the short run. In marked contrast, we find that economic growth has long‐run effect on human development, with no evidence of reverse causality. This shows that the endless fixation on economic growth has manifestly and consistently proven that GDP growth has had sluggish multiplier effect on inclusive development in Zambia. Finally, we draw country‐specific policy recommendations from our empirical findings.

Suggested Citation

  • Sydney Chikalipah & Daniel Makina, 2019. "Economic growth and human development: Evidence from Zambia," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(6), pages 1023-1033, November.
    • Handle: RePEc:wly:sustdv:v:27:y:2019:i:6:p:1023-1033
    DOI: 10.1002/sd.1953
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    Cited by:

    1. Paulos C Tsegaw, 2020. "The Nexus Between Good Governance Indicators And Human Development Index In Africa: An Econometric Analysis," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(2), pages 119-119, December.
    2. Gibogwe, Vincent & Nigo, Ayine R.S. & Kufuor, Karen, 2022. "Foreign direct investment and economic growth in Tanzania," MPRA Paper 115028, University Library of Munich, Germany, revised 20 Oct 2022.
    3. Serdar Ozturk & Seher Suluk, 2020. "The granger causality relationship between human development and economic growth: The case of Norway," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(6), pages 143-153, October.
    4. Seda Yıldırım & Durmuş Çağrı Yıldırım & Seda H. Bostancı & Elif Nur Tarı, 2022. "Winner or loser? The asymmetric role of natural resource rents on financial development among resource‐rich countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1921-1933, December.
    5. Funda Hatice Sezgin & Yunus Budak, 2022. "The Growth Impact of Human Development: A Developed- and Developing-Country Comparison," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 72(72-1), pages 81-104, June.
    6. Daxin Dong & Boyang Xu & Ning Shen & Qian He, 2021. "The Adverse Impact of Air Pollution on China’s Economic Growth," Sustainability, MDPI, vol. 13(16), pages 1-27, August.

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