| Abstract: |
This paper explores the two-way relationships between Economic Growth (EG) and
Human Development (HD), building on an earlier work by Ranis, Stewart, and
Ramirez (2000). Here, we show that HD is not only a product of EG but also an
important input to it. The paper develops new empirical strategies to estimate
the strength of the two-way chains connecting HD and EG. Building on existing
growth literature, we explore the empirical determinants of positive growth
trajectories running from HD to EG and find that HD plays an essential role in
explaining growth trajectories. Our findings point to the empirical relevance
of endogenous growth models in general, and threshold effect models in
particular. We also develop a measure of the strength of the EG to HD
relationship and explore some of its empirical determinants. A strong
sequencing implication of our findings is that HD must be given priority for
the achievement of both higher EG as well as HD. |