Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/98286
Authors: 
Ramirez, Alejandro
Ranis, Gustav
Year of Publication: 
1997
Series/Report no.: 
Center Discussion Paper 787
Abstract: 
This paper explores the links between economic growth and human development, identifying two chains, one from economic growth to human development, the other, from human development to economic growth. The importance of various links in each chain are explored empirically with the help of cross-country statistics for the period 1970-92. Public expenditures on health and education, notably female, represent especially important links determining the strength of the relationship between economic growth and human development. The investment rate and income distribution are significant links determining the strength of the relationship running from development to economic growth. These two-way chains can generate self-reinforcing, virtuous or vicious cycles of development, as well as identifying lop-sided performers. Over time we find that lop-sided development seldom persists: countries initially in favor of economic growth lapse into the vicious category, while countries favoring human development advance into the virtuous category. This finding implies that, although both human development and economic growth should be jointly promoted, human development should be given sequential priority.
Subjects: 
Human Development
Economic Growth
Cross-country Statistics 70-92
Resource Allocation
Income Distribution
Poverty
Productivity
Health
Technology
Education
JEL: 
O10
O11
O15
O57
Document Type: 
Working Paper

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