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

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Author Info

  • Michael Boozer

    ()
    (Economic Growth Center, Yale University)

  • Gustav Ranis

    ()
    (Economic Growth Center, Yale University)

  • Frances Stewart
  • Tavneet Suri

Abstract

This paper explores the two-way relationships between Economic Growth (EG) and Human Development (HD), building on an earlier work by Ranis, Stewart, and Ramirez (2000). Here, we show that HD is not only a product of EG but also an important input to it. The paper develops new empirical strategies to estimate the strength of the two-way chains connecting HD and EG. Building on existing growth literature, we explore the empirical determinants of positive growth trajectories running from HD to EG and find that HD plays an essential role in explaining growth trajectories. Our findings point to the empirical relevance of endogenous growth models in general, and threshold effect models in particular. We also develop a measure of the strength of the EG to HD relationship and explore some of its empirical determinants. A strong sequencing implication of our findings is that HD must be given priority for the achievement of both higher EG as well as HD.

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Bibliographic Info

Paper provided by Economic Growth Center, Yale University in its series Working Papers with number 874.

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Length: 48 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:egc:wpaper:874

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Keywords: Human Development; Economic Growth; Threshold Models;

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References

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Cited by:
  1. Sahbi Farhani & Sana Mrizak & Anissa Chaibi & Christophe Rault, 2014. "The Environmental Kuznets Curve and Sustainability: A Panel Data Analysis," CESifo Working Paper Series 4787, CESifo Group Munich.
  2. Enrico Casadio Tarabusi & Giulio Guarini, 2013. "An Unbalance Adjustment Method for Development Indicators," Social Indicators Research, Springer, vol. 112(1), pages 19-45, May.
  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. 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.
  5. Hermes, Niels & Smid, Peter & Yao, Lu, 2007. "Capital budgeting practices: A comparative study of the Netherlands and China," International Business Review, Elsevier, vol. 16(5), pages 630-654, October.
  6. 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.
  7. Alexander Cotte, Poveda, 2011. "Economic development and growth in Colombia: An empirical analysis with super-efficiency DEA and panel data models," Socio-Economic Planning Sciences, Elsevier, vol. 45(4), pages 154-164, December.
  8. 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.

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