Level of development of a country: A possible new approach
Human development is a multidimensional phenomenon. It depends on a number of non-monetary aspects of life (social indicators of development). Per capita gross domestic product (PCGDP) is a means to achieve these nonmonetary aspects of life. To what extent PCGDP of a country is transformed into social development is an important phenomenon. Income elasticities of social indicators with respect to PCGDP reflect such relationship. This study attempts to find income elasticities of eight social indicators of development with respect to per capita real gross domestic product (PCRGDP) adjusted for purchasing power parity and expressed in international dollars for four points of time: 1960, 1970, 1980 and 1990. The income elasticities of social indicators may be identified as necessity, luxury and inferior. On the basis of the nature of the income elasticities of the social indicators of development the level of development of a country may be identified. This paper attempts to identify the level of development of a country on the basis of the nature of the income elasticities of the social indicators of development.
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