Growth, Human Development, and Trade: The Asian Experience

This study looks at the three-way relationship between economic growth, human development, and openness to trade in a large panel of developing Asian economies. Using a theoretically motivated simultaneous equations system, we find that although human development contributes positively to economic growth, in the case of our Asian sample growth does not appear to have had a positive influence on human development. Uneven growth accompanied by lagging institutional development, preventing human capital formation, might have inhibited human development in the short to medium run. Complementary to the literature showing that growth is sustainable only when accompanied by human development, we confirm a role for trade liberalisation policies in achieving higher growth as well as human development.

Issue Date:
Dec 01 2016
Publication Type:
Working or Discussion Paper
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JEL Codes:
F43; O10; O15; O19; O53
The paper draws on Ghulam Mustafa’s doctoral research; nevertheless, the authors’ contributions to this paper are equal. We thank Michela Vecchi and John Grahl for contributions to earlier versions of the paper.
Series Statement:
LEAF AgEcon WP December 2016

 Record created 2017-04-01, last modified 2018-02-09

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