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Human Capital vs Physical Capital: A cross country analysis of human development strategies

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  • Siddiqui, Rizwana

Abstract

This study estimates a small simultaneous equation model using panel data from sixty-four countries for the years, 1996 and 2004. The model is estimated by various techniques - OLS, TSLS, dummy variable approach introducing variation at the regional level and fixed and random effect approaches introducing variation at the individual country level. The objective is to identify the importance of basic needs in human development strategies in Asia, Africa and rest of the world (ROW). The results show that income per capita has priority over basic need expenditure in development strategies of all regions despite quantitatively different. However, the importance of basic need expenditure cannot be denied in terms of capabilities development (improvement in health) that ultimately increases productivity.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13999.

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Date of creation: 05 Aug 2008
Date of revision: Dec 2008
Handle: RePEc:pra:mprapa:13999

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Keywords: Human capital; Physical capital; Income per capita; Basic needs Expenditures; Human Development;

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  1. 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, American Economic Association, vol. 7(1), pages 133-150, Winter.
  2. Richard J. Szal, 1980. "Operationalising the Concept of Basic Needs," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 19(3), pages 237-246.
  3. Lucia Hanmer & Robert Lensink & Howard White, 2003. "Infant and child mortality in developing countries: Analysing the data for Robust determinants," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 40(1), pages 101-118.
  4. Hicks, Norman L., 1979. "Growth vs basic needs: Is there a trade-off?," World Development, Elsevier, Elsevier, vol. 7(11-12), pages 985-994.
  5. Ravallion, Martin, 1997. "Good and bad growth: The human development reports," World Development, Elsevier, Elsevier, vol. 25(5), pages 631-638, May.
  6. Goldstein, Joshua S., 1985. "Basic human needs: The plateau curve," World Development, Elsevier, Elsevier, vol. 13(5), pages 595-609, May.
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Cited by:
  1. Rashida Haq & Uzma Zia, 2013. "Multidimensional Wellbeing: An Index of Quality of Life in a Developing Economy," Social Indicators Research, Springer, Springer, vol. 114(3), pages 997-1012, December.

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