Skip to main content

Advertisement

Log in

Economic and Social Determinants of Human Development: A New Perspective

  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

The aim of this work is to determine the factors affecting development, not only the economic ones, which play a central role in economic literature, but also social. To do so we have used a wide sample of countries and have estimated a panel data for 171 of those that have been members of the United Nations for a period of 16 years (from 1995 to 2010 inclusive). The results obtained allow us to conclude that fight against poverty, provision of basic infrastructure, and investment in greater democracy, greater stability and less corruption, have, in all cases, a positive effect on human development in these countries.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Acemoglu, D. (1997). Technology, unemployment and efficiency. European Economic Review, 41(3–5), 525–533.

    Article  Google Scholar 

  • Acemoglu, D., Naidu, S., Restrepo, P., & Robinson, J. A. (2014). Democracy does cause growth. NBER working paper no. 20004.

  • Afzal, M., Malik, M. E., Begum, I., Sarwar, K., & Fatima, H. (2012). Relationship among education, poverty and economic growth in Pakistan: An econometric analysis. Journal of Elementary Education, 22(1), 23–45.

    Google Scholar 

  • Alesina, A., & Dollar, D. (2000). Who gives foreign aid to whom and why? Journal of Economic Growth, 5, 33–63.

    Article  Google Scholar 

  • Alesina, A., Ozler, S., Roubini, N., & Swagel, P. (1996). Political instability and economic growth. Journal of Economic Growth, 1(2), 189–211.

    Article  Google Scholar 

  • Alesina, A., & Perotti, R. (1994). The political economy of growth: A critical survey of the recent literature. The World Bank Economic Review, 8(3), 351–371.

    Article  Google Scholar 

  • Alesina, A., & Perotti, R. (1996). Income distribution, political instability and investment. European Economic Review, 40(6), 1203–1228.

    Article  Google Scholar 

  • Alesina, A., & Weder, B. (1999). Do corrupt governments receive less foreign aid? NBER working paper no. 7108.

  • Ali, A. M., & Crain, W. M. (2002). Institutional distortions. Economic Freedom, and Growth, Cato Journal, 21(3), 415–426.

    Google Scholar 

  • Amate, I., & Guarnido, A. (2011). Factores Determinantes del Desarrollo Económico y Social. Málaga: Analistas Económicos de Andalucía.

    Google Scholar 

  • Anam, M. (1988). Quota-induced rent seeking, terms of trade and national welfare: A paradox. Journal of Development Economics, 28(3), 389–395.

    Article  Google Scholar 

  • Anwer, M. S., & Sampath, R. K. (1999). Investment and economic growth. Presented at Western Agricultural Economics Association annual meeting (pp. 11–14).

  • Arellano, M., & Bond, S. (1991). Some test of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economics Studies, 58(2), 277–297.

    Article  Google Scholar 

  • Armstrong, H., & Read, R. (2004). The economic performance of small states and islands: The importance of geography. Paper presented at Islands of the World VIII international conference, Taiwan.

  • Arvanitidis, P., Petrakos, G., & Pavleas, S. (2007). Determinants of economic growth: The experts’ view. Paris: Congress of European Regional Science Association.

    Google Scholar 

  • Baland, J.-M., & Francois, P. (2000). Rent-seeking and resource booms. Journal of Development Economics, 61, 527–542.

    Article  Google Scholar 

  • Barro, R. J. (1990). Comment on R. Dornbusch, F. Sturzenegger, H. Wolf, Extreme inflation: Dynamics and stabilization. Brookings Papers on Economic Activity, 2, 68–75.

    Google Scholar 

  • Barro, R. J. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics, 106(2), 407–443.

    Article  Google Scholar 

  • Barro, R. J. (1996). Democracy and growth. Journal of Economic Growth, 1(1), 1–27.

    Article  Google Scholar 

  • Barro, R. J. (1997). Determinants of economic growth, a cross-country empirical study. Cambridge, MA: MIT Press.

    Google Scholar 

  • Barro, R. J. (2000). Inequality and Growth in a Panel of Countries. Journal of Economic Growth, 5(1), 5–32.

    Article  Google Scholar 

  • Barro, R. J., & McCleary, R. (2003). Religion and economic growth. NBER working paper, 9682.

  • Barro, R. J., & Sala i Martin, X. (1995). Economic growth. New York: Mc Graw-Hill.

    Google Scholar 

  • Batra, R., & Pattanaik, P. K. (1971). Factor market imperfections and gains from trade. Oxford Economic Papers, 23(2), 182–188.

    Article  Google Scholar 

  • Bean, C. R., & Pissarides, C. (1993). Unemployment consumption and growth. European Economic Review, 37(4), 837–854.

    Article  Google Scholar 

  • Beck, N., & Katz, J. N. (1995). What to do (and not to do) with time-series cross-section data. American Political Science Review, 89(3), 634–647.

    Article  Google Scholar 

  • Benhabib, J. (2003). The tradeoff between inequality and growth. Annals of Economics and Finance, 4(2), 491–507.

    Google Scholar 

  • Bhagwati, J. (1966). The economics of underdeveloped countries. New York: McGraw Hill.

    Google Scholar 

  • Bhagwati, J. N., & Brecher, R. A. (1980). National welfare in an open economy in the presence of foreign-owned factors of production. Journal of International Economics, 10(1), 103–115.

    Article  Google Scholar 

  • Bleaney, M., & Greenaway, D. (2001). The impact of terms of trade and real exchange rate on investment and growth in sub-Saharan Africa. Journal of Development Economics, 65, 491–500.

    Article  Google Scholar 

  • Bloom, D., Canning, D., & Sevilla, J. (2004). The effect of health on economic growth: A production function approach. World Development, 32(1), 1–13.

    Article  Google Scholar 

  • Bloom, D., & Sachs, J. (1998). Geography, demography and economic growth in Africa. Brookings Papers on Economic Activity, 2, 207–295.

    Article  Google Scholar 

  • Bloom, D., & Williamson, J. (1998). Demographic transitions and economic miracles in emerging Asia. World Bank Economic Review, 12, 419–456.

    Article  Google Scholar 

  • Boix, C., & Posner, D. (1996). Making social capital work: A review of Robert Putnam’s making democracy word: Civic traditions in modern Italy. Harvard University Centre for International Affairs Working Paper Series 96-4, Cambridge.

  • Brander, J. A., & Dowrick, S. (1994). The role of fertility and population in economic growth: Empirical results from aggregate cross-national data. Journal of Population Economics, 7(1), 1–25.

    Article  Google Scholar 

  • Briguglio, L. (2004). Economic vulnerability and resilience: Concepts and measurements. In L. Briguglio & E. J. Kisanga (Eds.), Vulnerability and resilience of small states (pp. 43–53). Msida: Commonwealth Secretariat and the University of Malta.

    Google Scholar 

  • Brunetti, A. (1997). Political variables in cross-country growth analysis. Journal of Economic Surveys, 11(2), 163–190.

    Article  Google Scholar 

  • Bruno, M., & Easterly, W. (1996). Inflation and growth: In search of a stable relationship. The Federal Reserve Bank of Saint Louis Review, 78, 139–146.

    Google Scholar 

  • Cole, J. S. (2003). The contribution of economic freedom to world economic growth, 1980–99. Cato Journal, 23(2), 189–198.

    Google Scholar 

  • Coleman, J. S. (1990). Foundations of social theory. Cambridge: Harvard University Press.

    Google Scholar 

  • De Haan, J., & Siermann, C. L. J. (1995). A sensitivity analysis of the impact of democracy on economic growth. Empirical Economics, 20(2), 197–215.

    Article  Google Scholar 

  • De Vansaay, X., & Spindler, Z. A. (1994). Freedom and growth: Do constitutions matter? Public Choice, 78(3–4), 359–372.

    Article  Google Scholar 

  • Deaton, A. (1999). Commodity prices and growth in Africa. Journal of Economic Perspectives , 13(3), 23–40.

    Article  Google Scholar 

  • Del Monte, A., & Pagagni, E. (2001). Public expenditure, corruption, and economic growth: The case of Italy. European Journal of Political Economy, 17(1), 1–16.

    Article  Google Scholar 

  • Easterly, W., & Kraay, A. (2000). Small states, small problems? Income, growth, and volatility in small states. World Development, 28(11), 2013–2027.

    Article  Google Scholar 

  • Easterly, W., & Levine, R. (1997). Africa’s growth tragedy: Policies and ethnic divisions. Quarterly Journal of Economics, 112(4), 1203–1250.

    Article  Google Scholar 

  • Easterly, W., & Levine, R. (2003). Tropics, germs, and crops: How endowments influence economic development. Journal of Monetary Economics, 50(1), 3–39.

    Article  Google Scholar 

  • Fagerberg, J., Srholec, M., & Verspagen, B. (2010). Innovation and economic development. In B. H. Hall & N. Rosenberg (Eds.), Handbook of the economics innovation (Vol. 2, pp. 833–872). Amsterdam: North Holland.

    Google Scholar 

  • Faria, J., & Carneiro, F. (2001). Does high inflation affect growth in the long and short run? Journal of Applied Economics, 4(1), 89–105.

    Google Scholar 

  • Faruk, A., Kamel, M., & Véganzonès-Varoudakis, M. A. (2006). Governance and private investment in the Middle East and North Africa. World Bank Policy research working paper 3934.

  • Fischer, S. (1993). The role of macroeconomic factors in economic growth. Journal of Monetary Economics, 32, 485–512.

    Article  Google Scholar 

  • Fleck, R. K., & Kilby, C. (2006). How do political changes influence US bilateral aid allocations? Evidence from panel data. Review of Development Economics, 10(2), 210–223.

    Article  Google Scholar 

  • Fosu, A. K. (2001). Political instability and economic growth in developing economies: Some specification empirics. Economics Letters, 70(2), 289–294.

    Article  Google Scholar 

  • Gallup, J. H., Sachs, D., & Mellinger, D. (1999). Geography and economic development. International Regional Science Review, 22(2), 179–232.

    Article  Google Scholar 

  • Galor, O., & Moav, O. (2004). From physical to human capital accumulation: Inequality and the process of development. Review of Economic Studies, 71(4), 1001–1026.

    Article  Google Scholar 

  • Granato, J., Inglehart, R., & Leblang, D. (1996). The effect of cultural values on economic development: Theory, hypotheses, and some empirical tests. American Journal of Political Science, 40(3), 607–631.

    Article  Google Scholar 

  • Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3), 481–510.

    Article  Google Scholar 

  • Grier, K., & Tullock, G. (1989). An empirical analysis of cross-national economic growth, 1951–1980. Journal of Monetary Economics, 24(1), 259–276.

    Article  Google Scholar 

  • Gries, T., Kraft, M., & Meierrieks, D. (2009). Linkages between financial deepening, trade openness, and economic development: Causality evidence from Sub-Saharan Africa. World Development, 37(12), 1849–1860.

    Article  Google Scholar 

  • Gwartney, J., Lawson, R., & Holcombe, R. (1999). Economic freedom and the environment for economic growth. Journal of Institutional and Theoretical Economics, 155(4), 1–21.

    Google Scholar 

  • Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others. Quarterly Journal of Economics, 114(1), 83–116.

    Article  Google Scholar 

  • Hanke, H., & Walters, J. K. (1997). Economic freedom, prosperity, and equality: A survey. Cato Journal, 17(2), 117–146.

    Google Scholar 

  • Hausmann, R., Rodrik, D., & Velasco, A. (2008). Growth diagnostics. In N. Serra & J. E. Stiglitz (Eds.), The washington consensus reconsidered: Towards a new global governance. Oxford, RU: Oxford University Press.

  • Headey, D. D., & Hodge, A. (2009). The effect of population growth on economic growth: A meta-regression analysis of the macroeconomic literature. Population and Development Review, 35(2), 221–248.

    Article  Google Scholar 

  • Heldring, L., & Robinson, J. A. (2012). Colonialism and economic development in Africa. NBER working paper no. 18566.

  • Helliwell, J. F. (1994). Empirical linkages between democracy and economic growth. British Journal of Political Science, 21(2), 25–248.

    Google Scholar 

  • Huntington, S. P. (1968). Political order in changing societies. New Haven, CT: Yale University Press.

    Google Scholar 

  • Inglehart, R., & Baker, W. (2000). Modernization, cultural change and the persistence of traditional values. American Sociological Review, 65, 19–51.

    Article  Google Scholar 

  • International Monetary Fund (2003). World economic outlook: Growth and institutions. Washington: World Economic and Financial Surveys.

  • Islam, S. (1996). Economic freedom, per capita income and economic growth. Applied Economics Letters, 3(9), 595–597.

    Article  Google Scholar 

  • Judson, R., & Owen, A. (1999). Estimating dynamic panel data models: A guide for macroeconomists. Economics Letters, 65(1999), 9–15.

    Article  Google Scholar 

  • Kalemli-Ozcan, S. (2002). Does the mortality decline promote economic growth? Journal of Economic Growth, 7, 411–439.

    Article  Google Scholar 

  • Kaufmann, D., Kraay, A., & Zoido-Lobatón, P. (1999). Governance matters. World Bank policy research working paper 2196.

  • Kelley, A. C., & Schmidt, R. M. (1995). Aggregate population and economic growth correlations: The role of the components of demographic change. Demography, 32, 543–555.

    Article  Google Scholar 

  • Kelley, A. C., & Schmidt, R. M. (2000). Economic and demographic change: A synthesis of models, findings and perspectives. In N. Birdsall, A. C. Kelley, & S. Sinding (Eds.), Demography matters: Population change, economic growth and poverty in the developing world (pp. 213–245). Oxford: Oxford University Press.

    Google Scholar 

  • Kenny, C. (2003). The internet and economic growth in less-developed countries: A case of managing expectations? Oxford Development Studies, 31(1), 99–113.

    Article  Google Scholar 

  • Kenworthy, L. (1997). Civic engagement, social capital, and economic cooperation. American Behavioural Scientist, 40(5), 645–956.

    Article  Google Scholar 

  • Knack, S. (1996). Institutions and the convergence hypothesis: The cross-national evidence. Public Choice, 87(3–4), 207–228.

    Article  Google Scholar 

  • Knack, S., & Keefer, P. (1997). Does social capital have an economic payoff? A cross-country investigation. Quarterly Journal of Economics, 112(4), 1251–1288.

    Article  Google Scholar 

  • Kormendi, R., & Meguire, P. G. (1985). Macroeconomics determinants of growth: Cross-country evidence. Journal of Monetary Economics, 16(2), 141–163.

    Article  Google Scholar 

  • Kuziemko, I., & Werker, E. (2006). How much is a seat on the Security Council worth? Foreign aid and bribery at the United Nations. Journal of Political Economy, 114, 905–930.

    Article  Google Scholar 

  • Landes, D. (2000). Culture makes almost all the difference. In L. E. Harrison & S. P. Huntington (Eds.), Culture matters: How values shape human progress (pp. 2–13). New York: Basic Books.

    Google Scholar 

  • Lazear, E. P., & Rosen, S. (1981). Rank-order tournaments as optimum labor contracts. Journal of Political Economy, 89(5), 841–864.

    Article  Google Scholar 

  • Lee, S.-Y. T., Gholami, R., & Tong, T. Y. (2005). Time series analysis in the assessment of ICT impact at the aggregate level—Lessons and implications for the new economy. Information & Management, 42(7), 1009–1022.

    Article  Google Scholar 

  • Lensink, R. (2001). Financial development, uncertainty and economic growth. The Economist, 149(3), 299–312.

    Article  Google Scholar 

  • Lensink, R., Bo, H., & Sterken, E. (1999). Does uncertainty affect economic growth? An empirical analysis. Weltwirtschaftliches Archiv, 135, 379–396.

    Article  Google Scholar 

  • Lipset, S. M. (1959). Some social requisites of democracy: Economic development and political legitimacy. American Political Science Review, 53, 69–105.

    Article  Google Scholar 

  • Masters, W., & McMillan, M. (2001). Climate and scale in economic growth. Journal of Economic Growth, 6, 167–186.

    Article  Google Scholar 

  • Matthews, R. (1986). The economics of institutions and the sources of growth. The Economic Journal, 96, 903–918.

    Article  Google Scholar 

  • Mauro, P. (1995). Corruption and growth. Quarterly Journal of Economics, 110(3), 681–712.

    Article  Google Scholar 

  • Mauro, P. (1997). Why worry about corruption? Economic issues 6. Washington, DC: International Monetary Fund.

    Google Scholar 

  • Murphy, K. M., Sheifer, A., & Vishny, R. (1993). Why is rent-seeking costly to growth? The American Economic Review, 82(2), 409–414.

    Google Scholar 

  • North, D. C. (1990). Institutions, institutional change, and economic performance. New York: Cambridge University Press.

    Book  Google Scholar 

  • Olson, M. (1982). The rise and decline of nations. CT: Yale University Press.

    Google Scholar 

  • Olson, M., Sarna, S. N., & Swamy, A. (2000). Governance and growth: A simple hypothesis explaining cross-country differences in productivity growth. Public Choice, 102(3–4), 341–364.

    Article  Google Scholar 

  • Paul, S., Kearney, C., & Chowdhury, K. (1997). Inflation and economic growth: A multicountry empirical analysis. Applied Economics, 29(10), 1387–1401.

    Article  Google Scholar 

  • Pearson, T., & Tabellini, G. (1994). Is inequality harmful for growth? Theory and evidence. The American Economic Review, 84(3), 600–621.

    Google Scholar 

  • Perlo-Freeman, S. P., & Webber, D. J. (2009). Basic needs, government debt and economic growth. The World Economy, 32(6), 965–994.

    Article  Google Scholar 

  • Piketty, T. (1997). The dynamics of the wealth distribution and interest rates with credit rationing. Review of Economic Studies, 64(2), 173–189.

    Article  Google Scholar 

  • Pritchett, L. (2001). Where has all the Education Gone? World Bank Economic Review, 15, 367–391.

    Article  Google Scholar 

  • Putnam, R. D. (1993). Making democracy work: Civic traditions in modern Italy. Princeton: Princeton University Press.

    Google Scholar 

  • Rajan, R., & Subramanian, A. (2008). Aid and growth: What does the cross-country evidence really show? Review of Economics and Statistics, 90(4), 643–665.

    Article  Google Scholar 

  • Rigobon, R., & Rodrik, D. (2005). Rule of law, democracy, openness, and income: Estimating the interrelationships. Economics of Transition, 13(3), 533–564.

    Article  Google Scholar 

  • Rodrik, D. (1991). Policy uncertainty and private investment in developing countries. Journal of Development Economics, 36(1), 229–242.

    Article  Google Scholar 

  • Rodrik, D. (1999). Where did all the growth go? External shocks, social conflict, and growth collapses. Journal of Economic Growth, 4(4), 385–412.

    Article  Google Scholar 

  • Rodrik, D. (2007). One economics, many recipes: Globalizations, institutions and economic growth. Princeton, NJ: Princeton University Press.

  • Rodrik, D., Subramanian, A., & Trebbi, F. (2004). Institutions rule: The primacy of institutions over geography and integration in economic development. Journal of Economic Growth, 9(2), 131–165.

    Article  Google Scholar 

  • Sachs, J. D., & Werner, A. (1997). Sources of slow growth in African Economies. Journal of African Economies, 6, 335–376.

    Article  Google Scholar 

  • Scully, G. W. (1988). The institutional framework and economic development. Journal of Political Economy, 96(3), 652–662.

    Article  Google Scholar 

  • Sen, A. K. (1999). Development as freedom. New York: Oxford University Press.

    Google Scholar 

  • Shirley, M. M. (2005). Institutions and development. In C. Menard & M. M. Shirley (Eds.), Handbook of new institutional economics (pp. 611–638). Dordrecht: Springer.

    Chapter  Google Scholar 

  • Shleifer, A., & Vishny, R. (1993). Corruption. Quarterly Journal of Economics, 108(3), 599–617.

    Article  Google Scholar 

  • Streeten, P., Burki, S. J., Ul Haq, M., Hicks, N., & Stewart, F. (1981). First thing first: Meeting basic human needs in the developing countries. New York: Oxford University Press.

    Google Scholar 

  • Strittmatter, A., & Sunde, U. (2013). Health and economic development—Evidence from the introduction of public health care. Journal of Population Economics, 26, 1549–1584.

    Article  Google Scholar 

  • Stroup, M. (2007). Economic freedom, democracy, and the quality of life. World Development, 35, 52–66.

    Article  Google Scholar 

  • Tanzi, V., & Davoodi, H. R. (2002). Corruption, growth and public finances. In G. T. Abed & S. Gupta (Eds.), Governance, corruption, & economic performance. Washington: International Monetary Fund.

    Google Scholar 

  • Varsakelis, N. C. (2006). Education, political institutions and innovate activity: A cross-country empirical investigation. Research Policy , 35, 1083–1090.

    Article  Google Scholar 

  • Yanikkaya, H. (2003). Trade openness and economic growth: A cross-country empirical investigation. Journal of Development Economics, 72(1), 57–89.

    Article  Google Scholar 

  • Zak, P., & Knack, S. (2001). Trust and growth. The Economic Journal, 111, 295–321.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ignacio Amate-Fortes.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Amate-Fortes, I., Guarnido-Rueda, A. & Molina-Morales, A. Economic and Social Determinants of Human Development: A New Perspective. Soc Indic Res 133, 561–577 (2017). https://doi.org/10.1007/s11205-016-1389-z

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-016-1389-z

Keywords

JEL Classification

Navigation