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Economic Growth and Human Development

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  • Alejandro Ramirez
  • Gustav Ranis

    ()
    (Economic Growth Center, Yale University)

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    Abstract

    This paper explores the links between economic growth and human development, identifying two chains, one from economic growth to human development, the other, from human development to economic growth. The importance of various links in each chain are explored empirically with the help of cross-country statistics for the period 1970-92. Public expenditures on health and education, notably female, represent especially important links determining the strength of the relationship between economic growth and human development. The investment rate and income distribution are significant links determining the strength of the relationship running from development to economic growth. These two-way chains can generate self-reinforcing, virtuous or vicious cycles of development, as well as identifying lop-sided performers. Over time we find that lop-sided development seldom persists: countries initially in favor of economic growth lapse into the vicious category, while countries favoring human development advance into the virtuous category. This finding implies that, although both human development and economic growth should be jointly promoted, human development should be given sequential priority.

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    Bibliographic Info

    Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 787.

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    Length: 47 pages
    Date of creation: Dec 1997
    Date of revision:
    Handle: RePEc:egc:wpaper:787

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    Related research

    Keywords: Human Development; Economic Growth; Cross-country Statistics 70-92; Resource Allocation; Income Distribution; Poverty; Productivity; Health; Technology; Education;

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    References

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Cited by:
    1. Jomo K.S., 2006. "Growth with Equity in East Asia?," Working Papers 33, United Nations, Department of Economics and Social Affairs.
    2. Howard White, 1999. "Global poverty reduction: are we heading in the right direction?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(4), pages 503-519.
    3. Alejandro Diaz Bautista & Mauro Diaz Dominguez, 2004. "Capital Humano y Crecimiento Económico en México (1970-2000). Human Capital and Economic Growth in Mexico," Urban/Regional 0405008, EconWPA.
    4. Robert Lensink & Howard White, 2000. "Aid allocation, poverty reduction and the Assessing Aid report," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(3), pages 399-412.

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