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Growth, Human Development, and Trade: The Asian Experience

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  • Mustafa, Ghulam
  • Rizov, Marian
  • Kernohan, David

Abstract

This study looks at the three-way relationship between economic growth, human development, and openness to trade in a large panel of developing Asian economies. Using a theoretically motivated simultaneous equations system, we find that although human development contributes positively to economic growth, in the case of our Asian sample growth does not appear to have had a positive influence on human development. Uneven growth accompanied by lagging institutional development, preventing human capital formation, might have inhibited human development in the short to medium run. Complementary to the literature showing that growth is sustainable only when accompanied by human development, we confirm a role for trade liberalisation policies in achieving higher growth as well as human development.

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  • Mustafa, Ghulam & Rizov, Marian & Kernohan, David, 2016. "Growth, Human Development, and Trade: The Asian Experience," Lincoln Economics and Finance Agecon Working Papers 250248, University of Lincoln, Lincoln International Business School.
  • Handle: RePEc:ags:ulefwp:250248
    DOI: 10.22004/ag.econ.250248
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    2. Bryane Michael, 2018. "What does Brunei teach us about using Human Development Index rankings as a policy tool?," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 414-431, March.
    3. Amirmohsen Behjat & Mohammad Hassan Tarazkar, 2021. "Investigating the factors affecting the ecological well-being performance in Iran from 1994 to 2014," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13871-13889, September.
    4. Md. Qamruzzaman & Wei Jianguo & Sharmin Jahan & Zhu Yingjun, 2021. "Financial innovation, human capital development, and economic growth of selected South Asian countries: An application of ARDL approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4032-4053, July.
    5. Moaniba, Igam M. & Su, Hsin-Ning & Lee, Pei-Chun, 2019. "On the drivers of innovation: Does the co-evolution of technological diversification and international collaboration matter?," Technological Forecasting and Social Change, Elsevier, vol. 148(C).
    6. Chhorn, Theara & Chhorn, Dina, 2017. "Modelling Linkage of Globalization and Financial Development to Human Development in CLMV Region," MPRA Paper 84878, University Library of Munich, Germany, revised 01 Nov 2017.
    7. Emilie Le Caous & Fenghueih Huarng, 2020. "Economic Complexity and the Mediating Effects of Income Inequality: Reaching Sustainable Development in Developing Countries," Sustainability, MDPI, Open Access Journal, vol. 12(5), pages 1-26, March.
    8. Wang, Zhaohua & Bui, Quocviet & Zhang, Bin & Nawarathna, Chulan Lasantha K. & Mombeuil, Claudel, 2021. "The nexus between renewable energy consumption and human development in BRICS countries: The moderating role of public debt," Renewable Energy, Elsevier, vol. 165(P1), pages 381-390.
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    10. Simplice A. Asongu & Samba Diop, 2021. "Human development and governance in Africa: do good fences make good neighbours?," Working Papers of the African Governance and Development Institute. 21/051, African Governance and Development Institute..
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    More about this item

    Keywords

    International Development;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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