An analysis of Human Development Index and Economic Growth. A case study of Pakistan

Authors

  • Muhammad Taqi Bahauddin Zakaryia University, Multan, Pakistan
  • Muhammad Sibt e Ali Bahauddin Zakariya University Multan, Pakistan.
  • Sabiha Parveen The Women University Multan, Pakistan
  • Mehtab Babar Institute of Southern Punjab, Multan, Pakistan
  • Inam Makki Khan National University of Modern Language, Islamabad, Pakistan

DOI:

https://doi.org/10.52131/joe.2021.0303.0042

Keywords:

Human Development Index, Welfare, Economic Growth

Abstract

Economic growth is an important factor in the economic development of a country. There are some factors that can increase economic growth namely human development. The level of human development in a country array in the value of the Human Development Index (HDI). The growth rate of a country appears in the value of the Gross Domestic Product (GDP) per Capita. The influence of human power resources is shown in the value of HDI which is able to influence the level of economic growth in the value of its GDP. This study will examine the effect of HDI on economic growth in Pakistan during the period 1980-2018 against its economic growth in its GDP per capita. The result of this research indicates that each country has a strong and significant correlation between HDI and GDP. It is concluded that the level of HDI can affect the GDP per capita. Economic growth makes it possible to reach a high level of human development, on the one hand, increasing levels of human development leading to increase opportunities for economic growth. The causal relationship between economic growth and human development becomes a mutually influential relationship. So it is clear that the human development in the country relates to an influence of economic growth which is seen in per capita income (GDP per capita) which can be an indicator of welfare in the country.

Author Biographies

Muhammad Taqi, Bahauddin Zakaryia University, Multan, Pakistan

M Phil Economics, School of Economics

Muhammad Sibt e Ali, Bahauddin Zakariya University Multan, Pakistan.

M. Phil Scholar, School of Economics.

Inam Makki Khan, National University of Modern Language, Islamabad, Pakistan

Department of Business Administration

References

Anand, S. and A. Sen [2004]: The Income Component of the Human Development Index, Journal of Human Development, 1 (1).
Boozer, M., G. Ranis, F. Stewart and T. Suri [2003]: Paths to Success: The Relationship between Human Development and Economic Growth, Discussion Paper No. 874, Economic Growth Center, Yale University: New Haven, Available in http://ssrn.com/abstract=487469.
Cahill, M. B. [2005]: Is the Human Development Index Redundant, Eastern Economic Journal, 31 (1).
Costanza, R., M. Hart, S. Posner and J. Talberth [2009]: Beyond GDP: The Need for New Measures of Progress, The Pardee Papers No. 4, Boston University: Boston.
Coyle, D. [2014]: GDP: A Brief but Affectionate History, Princeton University Press: New Jersey.
Decanq, K. and M.A. Lugo [2013]: Weights in Multidimensional Indices of Well-Being: An Overview, Econometric Review, 32(1), pp. 7-34, January.
European Commission [2009]: GDP and Beyond: Measuring Progress in a Changing World, Communication from the Commission to the Council and the European Parliament, COM (2009) 433 (final): Brussels.
European Commission [2013]: Progress on the GDP and Beyond Actions, Staff Working Document 2013 (303), Vol. 1, Brussels.
Fukuda-Parr, Sakiko (2003): The Human Development Paradigm: Operationalizing Sen’s Ideas on Capabilities, Feminist Economics, 9 (2 – 3).
Haq, Mahbub ul (1995): Reflections on Human Development, Oxford University Press, New York.
Hicks, N. and P. Streeten [1979]: Indicators of Development: The Search for a Basic Needs Yardstick, World Development, 7(6), pp. 567-580.
Karabell, Z. [2014]: The Leading Indicators: A Short History of the Numbers that Rule Our World, Simon & Schuster: New Jersey.
Konya, L. and M. Guisan [2008]: What Does the Human development Index tell us about Convergence? Applied Econometrics and International Development, 8(1).
Mayer-Foulkes, D. [2010]: Divergences and Convergences in Human Development, Human Development Research Paper 2010/20, UNDP.
McGillivray, M. [1991]: The Human Development Index: Yet another Redundant Composite Development Indicator, World Development, 19 (10).
McGillivray, M. and White, H. [1993]: Measuring Development” The UNDP’s Human Development Index, Journal of International Development, 5(2).
Mazumdar, K. [2002]: A Note on Cross-Country Divergence in Standard of Living, Applied Economics Letters, Vol. 9, pp. 87-90.
Molina, G.G. and M. Purser [2010]: Human Development Trends since 1970: A Social Convergence Story, Human Development Research Paper 2010/02, UNDP.
Noor bakhsh, F. [1998]: The Human Development Index: Some Technical Issues and Alternative Indices, Journal of International Development, Vol. 10, pp. 589-605.
Noor bakhsh, F. [2006]: International Convergence or Higher Inequality in Human Development: Evidence from 1975 to 2002, Research Paper, No. 2006/15, United Nations University, World Institute of Development Economics Research.
Ranis, G. [2004]: Human Development and Economic Growth, Discussion Paper No. 887, Economic Growth Center, Yale University: New Haven, Available in: http://ssrn.com/abstract=551662
Ranis, G. and F. Stewart [2004]: Dynamic links between the Economy and Human Development, United Nations Department of Economic and Social Affairs (UN-DESA) Working Paper No. 8, UN: New York, Available in http://www.un.org/esa/desa/papers.
Ranis, G. and F. Stewart [2006]: Successful Transition towards a Virtuous Cycle of Human Development and Economic Growth: Country Studies, Discussion Paper No. 943, Economic Growth Center, Yale University: New Haven, Available in: http://ssrn.com/abstract=920603.
Ranis, G., F. Stewart and A. Ramirez [2000]: Economic Growth and Human Development, World Development, 28(2), pp. 197-219.
Ravallion, Martin [2012]: Mash-up Indices of Development, World Bank Research Observer, Vol. 27, No. 1, pp. 1-32.
Santos, M. E. G. Santos [2014]: Composite Indices of Development, in Bruce CurrieAlder, Ravi Kanbur and D.M Malone [Edt]: International Development: Ideas, Experience and Prospects, Oxford University Press: New York. Stiglitz, J.E., A.
Sen and Jean-Paul Fitoussi [2008]: Issues Paper, Commission on the Measurement of Economic Performance and Social Progress, CMEPSP Issues Paper No. 25/07/08-1.
Sutcliffe, B. [2004]: World Inequality and Globalization, Oxford Review of Economic Policy, Vol. 20, pp. 15-37.
United Nations [1993]: The System of National Accounts, 1993, United Nations: New York.
United Nations [2008]: The System of National Accounts, 2008, United Nations: New York.
United Nations Development Programme [1990]: Human Development Report 1990. Oxford University Press for UNDP: New York.
United Nations Development Programme [1996]: Human Development Report 1996. Oxford University Press for UNDP: New York.
Weimann, J., A. Knabe and R. Schob [2015]: Measuring Happiness: The Economics of Well-Being, MIT Press: Cambridge.

Downloads

Published

2021-12-15

How to Cite

Taqi, M. ., Ali, M. S. e, Parveen, S. ., Babar, M. ., & Khan, I. M. . (2021). An analysis of Human Development Index and Economic Growth. A case study of Pakistan. IRASD Journal of Economics, 3(3), 261 –. https://doi.org/10.52131/joe.2021.0303.0042