Living Standard and Economic Growth: A Fresh Look at the Relationship Through The Nonparametric Approach
AbstractThe relative role of economic growth vis-a-vis public action in raising living standards in developing countries has been a point of contention for quite some time now. The arguments on both sides are usually based on some estimated relationship between indicators of living standard and other variables. A critical review of the existing studies throws up some methodological issues among which misspecification of the model is most crucial. An alternative approach, viz. the nonparametric regression method, has been shown to be superior in taking care of this problem. Analysing the data for 88 developing countries we note that per capita income has positive significant effect on the life-expectancy at birth. However, we have not observed any relationship between the improvement in life-expectancy and change in income as well as the level of income, unlike some earlier studies. This study has the implication that well-targeted public policies may be successful in improving the standard of living in poor economies in the short-term. But for sustainability in the long-term, growth-based strategies are necessary. [Working Paper No. 283]
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by eSocialSciences in its series Working Papers with number id:3161.
Date of creation: Nov 2010
Date of revision:
Note: Institutional Papers
Contact details of provider:
Web page: http://www.esocialsciences.org
standard of living; model specification; nonparametric regression; public action vs. public expenditure;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-20 (All new papers)
- NEP-FDG-2010-11-20 (Financial Development & Growth)
- NEP-HAP-2010-11-20 (Economics of Happiness)
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.:
- Oliver LINTON, .
"Applied nonparametric methods,"
Statistic und Oekonometrie
9312, Humboldt Universitaet Berlin.
- Kakwani, N., 1993. "Performance in living standards : An international comparison," Journal of Development Economics, Elsevier, vol. 41(2), pages 307-336, August.
- Bhalla, Surjit S & Glewwe, Paul, 1986. "Growth and Equity in Developing Countries: A Reinterpretation of the Sri Lankan Experience," World Bank Economic Review, World Bank Group, vol. 1(1), pages 35-63, September.
- Hardle, W., 1992.
"Applied Nonparametric Methods,"
1992-6, Tilburg University, Center for Economic Research.
- Hardle, W., 1992. "Applied Nonparametric Methods," Papers 9204, Catholique de Louvain - Institut de statistique.
- Wolfgang Hardle & Oliver Linton, 1994. "Applied Nonparametric Methods," Cowles Foundation Discussion Papers 1069, Cowles Foundation for Research in Economics, Yale University.
- HÄRDLE, Wolfgang, 1992. "Applied nonparametric methods," CORE Discussion Papers 1992003, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Hardle, W., 1992. "Applied Nonparametric Methods," Papers 9206, Tilburg - Center for Economic Research.
- Lant Pritchett & Lawrence H. Summers, 1996.
"Wealthier is Healthier,"
Journal of Human Resources,
University of Wisconsin Press, vol. 31(4), pages 841-868.
- Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
- Isenman, Paul, 1980. "Basic needs: The case of Sri Lanka," World Development, Elsevier, vol. 8(3), pages 237-258, March.
- Streeten, Paul & Burki, Shahid Javed, 1978. "Basic needs: Some issues," World Development, Elsevier, vol. 6(3), pages 411-421, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash).
If references are entirely missing, you can add them using this form.