Divergences and Convergences in Human Development
AbstractI conduct a cross-country analysis of the human development index (HDI) components, income, life expectancy, literacy and gross enrolment ratios, using Gray and PurserÕs 1970-2005 quinquennial database for 111 countries. 1) A descriptive analysis uncovers a complex pattern of divergence and convergence for these componentsÕ evolution. Development is not a smooth process but consists of a series of superposed transitions each taking off with increasing divergence and then converging. 2) Absolute divergence/convergence for the HDI components is decomposed using simultaneous growth regressions including a full set of quadratic interactions between the HDI components, and indicators of urbanization, trade, institutions, foreign direct investment and physical geography. These are implemented, first, using three stage least squares, all of the non-exogenous independent variables fully instrumented, and second, as independent regressions with errors clustered by countries, again all non-exogenous variables instrumented. 3) A set of quantile regressions is run for the HDI component levels on the same variables (just the linear terms), again fully instrumented. Urbanization is a leading significant variable for human development indicators in both sets of estimates, stronger than trade, FDI and institutional indicators. These indicators act with ambiguous signs that may result from their distributive impacts, reducing their effectiveness. The results indicate that improving markets will have smaller returns than complementing them with institutions that can coordinate urbanization as well as investment in human capital. Urbanization itself can provide a concrete agenda for development involving all aspects of economic, political and social life as well as human development.
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 Human Development Report Office (HDRO), United Nations Development Programme (UNDP) in its series Human Development Research Papers (2009 to present) with number HDRP-2010-20.
Length: 58 pages
Date of creation: Sep 2010
Date of revision:
Publication status: Published as background research for the 2010 Human Development Report.
human development; growth; convergence; divergence; urbanization;
Other versions of this item:
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O20 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - General
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-09 (All new papers)
- NEP-DEV-2010-10-09 (Development)
- NEP-HAP-2010-10-09 (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.:
- Ryan D. Edwards, 2010. "Trends in World Inequality in Life Span Since 1970," NBER Working Papers 16088, National Bureau of Economic Research, Inc.
- Ram, Rati, 2006. "State of the "life span revolution" between 1980 and 2000," Journal of Development Economics, Elsevier, vol. 80(2), pages 518-526, August.
- David E. Bloom & David Canning & Günther Fink, 2008. "Population Aging and Economic Growth," PGDA Working Papers 3108, Program on the Global Demography of Aging.
- Castellacci, Fulvio, 2008.
"Technology clubs, technology gaps and growth trajectories,"
27595, University Library of Munich, Germany.
- Castellacci, Fulvio, 2008. "Technology clubs, technology gaps and growth trajectories," Structural Change and Economic Dynamics, Elsevier, vol. 19(4), pages 301-314, December.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004.
"Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development,"
Journal of Economic Growth,
Springer, vol. 9(2), pages 131-165, 06.
- Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2002. "Institutions Rule: The Primacy of Institutions over Geography and Integration in Economic Development," NBER Working Papers 9305, National Bureau of Economic Research, Inc.
- Rodrik, Dani & Subramanian, Arvind & Trebbi, Francesco, 2002. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," CEPR Discussion Papers 3643, C.E.P.R. Discussion Papers.
- Bloom, David E & Canning, David & Sevilla, Jaypee, 2003. " Geography and Poverty Traps," Journal of Economic Growth, Springer, vol. 8(4), pages 355-78, December.
- Oded Galor, 2006. "The Demographic Transition," Working Papers 2006-24, Brown University, Department of Economics.
- Leandro Prados de la Escosura, 2011.
"Human Development in Africa: A Long-Run Perspective,"
0008, European Historical Economics Society (EHES).
- Prados de la Escosura, Leandro, 2013. "Human development in Africa: A long-run perspective," Explorations in Economic History, Elsevier, vol. 50(2), pages 179-204.
- Leandro Prados de la Escosura, 2011. "Human development in Africa : a long-run perspective," Working Papers in Economic History wp11-09, Universidad Carlos III, Departamento de Historia Económica e Instituciones.
- Prados de la Escosura, Leandro, 2011. "Human Development in Africa: A Long-run Perspective," CEPR Discussion Papers 8586, C.E.P.R. Discussion Papers.
- Simplice A, Asongu, 2012.
"African Development: Beyond Income Convergence,"
36054, University Library of Munich, Germany.
- Michael Binder & Georgios Georgiadis, 2010. "Determinants of Human Development: Insights from State-Dependent Panel Models," Human Development Research Papers (2009 to present) HDRP-2010-24, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Michael Binder & Georgios Georgiadis, 2011. "Determinants of Human Development: Capturing the Role of Institutions," CESifo Working Paper Series 3397, CESifo Group Munich.
- David Mayer-Foulkes, 2011. "A Causal Panorama of Cross-Country Human Development," DEGIT Conference Papers c016_049, DEGIT, Dynamics, Economic Growth, and International Trade.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (HDRO/UNDP).
If references are entirely missing, you can add them using this form.