The Impact of Human Development on Economic Growth: An Application on Transition Economies

Article Information
Journal: Business and Economics Research Journal
Title of Article: The Impact of Human Development on Economic Growth: An Application on Transition Economies
Author(s): Gokhan Akar, Tufan Saritas, Oktay Kizilkaya
Volume: 12
Number: 2
Year: 2021
Page: 307-318
ISSN: 2619-9491
DOI Number: 10.20409/berj.2021.323
Abstract
Human development is defined as the process of accessing resources necessary for a healthy and good level of life of individuals. A country’s level of human development is measured by the Human Development Index, which is used as a summary measure of health, education, and income indicators representing three dimensions of human well-being. Human development, which is an important factor in measuring human well-being, is also considered an important input in economic growth. The aim of this study is to analyze the effect of human development on economic growth using the panel data from 25 transition economy countries for the period 2002-2018. In the study, two different models were established on which the economic growth series depended. In the first model, only human development series is the independent variable. In the empirical findings obtained, it was found that economic growth increased as human development increased. In the second model, the unemployment series with human development are independent variables. In the second model findings, it is understood that economic growth increases as human development increases, similar to the first model. In addition, an inverse relationship between unemployment and economic growth has been identified in this model.

Keywords: Transition Economies, Human Development, Human Development Index, Economic Growth, Panel Data Analysis

JEL Classification: O15, C23

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