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Advancing Human DevelopmentTheory and Practice$
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Frances Stewart, Gustav Ranis, and Emma Samman

Print publication date: 2018

Print ISBN-13: 9780198794455

Published to Oxford Scholarship Online: March 2018

DOI: 10.1093/oso/9780198794455.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 16 May 2021

The Relationship between Human Development and Economic Growth

The Relationship between Human Development and Economic Growth

(p.45) 3 The Relationship between Human Development and Economic Growth
Advancing Human Development

Frances Stewart

Gustav Ranis

Emma Samman

Oxford University Press

This chapter explores the interactions between economic growth and human development, as measured by the Human Development Index, theoretically and empirically. Drawing on many studies it explores the links in two chains, from economic growth to human development, and from human development to growth. Econometric analysis establishes strong links between economic growth and human development, and intervening variables influencing the strength of the chains. Because of the complementary relationship, putting emphasis on economic growth alone is not a long-term viable strategy, as growth is likely to be impeded by failure on human development. The chapter classifies country performance in four ways: virtuous cycles where both growth and human development are successful; vicious cycles where both are weak; and lopsided ones where the economy is strong but human development is weak, or conversely ones where human development is strong but the economy is weak.

Keywords:   human development, economic growth, social expenditures, health, school enrolment, investment, virtuous cycles, vicious cycles

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