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Dynamic Links between the Economy and Human Development

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Author Info
Gustav Ranis
Frances Stewart
Abstract

This paper empirically confirms the significance of various links in each of two chains over time: from economic growth (EG) to human development (HD), including EG itself, income distribution, the social expenditure ratio and female education; from HD to EG, including HD itself, along with the investment ratio. Our most important conclusion concerns sequencing over time. EG, which is an important input into HD improvement, is itself not sustainable without such improvement, either prior or simultaneous. Therefore, traditional policy advice, which argues that HD improvements must wait until EG expansion makes it affordable, is likely to be in error.

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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 8.

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Length: 17 pages
Date of creation: Nov 2005
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Handle: RePEc:une:wpaper:8

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Related research
Keywords: human development; economic growth; comparative country studies;

Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General

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  5. Berhman, J.R., 1990. "The action of human resources and poverty on one another: what we have yet to learn," Papers 74, World Bank - Living Standards Measurement.
  6. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, Oxford University Press, vol. 9(3), pages 477-508, September.
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  11. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September. [Downloadable!] (restricted)
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  1. Isabel Ortiz, 2007. "Social Policy," Policy Notes 6, United Nations, Department of Economics and Social Affairs. [Downloadable!]
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