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Human Capital vs. Physical Capital : A Cross-Country Analysis of Human Development Strategies

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  • Rizwana Siddiqui

    (PIDE)

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 techniquesOLS, 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 the rest of the world (ROW). The results show that income per capita has priority over basic needs expenditure in development strategies of all regions despite being quantitatively different. However, the importance of basic needs expenditure cannot be denied in terms of capabilities development (improvement in health) that ultimately increases productivity.

Suggested Citation

  • Rizwana Siddiqui, 2009. "Human Capital vs. Physical Capital : A Cross-Country Analysis of Human Development Strategies," Labor Economics Working Papers 22982, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:laborw:22982
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    References listed on IDEAS

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    1. Ravallion, Martin, 1997. "Good and bad growth: The human development reports," World Development, Elsevier, vol. 25(5), pages 631-638, May.
    2. Goldstein, Joshua S., 1985. "Basic human needs: The plateau curve," World Development, Elsevier, vol. 13(5), pages 595-609, May.
    3. Paul Streeten, 1980. "Basic Needs in the Year 2000," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 19(2), pages 129-141.
    4. 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, vol. 40(1), pages 101-118.
    5. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151, December.
    6. 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.
    7. Richard J. Szal, 1980. "Operationalising the Concept of Basic Needs," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 19(3), pages 237-246.
    8. Hicks, Norman L., 1979. "Growth vs basic needs: Is there a trade-off?," World Development, Elsevier, vol. 7(11-12), pages 985-994.
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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: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(3), pages 997-1012, December.

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    More about this item

    Keywords

    Human Capital; Physical Capital; Income Per Capita; Basic Needs Expenditures; Human Development;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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