Is There any Relationship Between Economic Growth and Human Development? Evidence from Indian States

29 Pages Posted: 13 Jun 2010

See all articles by Sacchidananda Mukherjee

Sacchidananda Mukherjee

National Institute of Public Finance and Policy

Debashis Chakraborty

Indian Institute of Foreign Trade

Date Written: May 31, 2010

Abstract

The paper attempts to analyse the relationship between economic growth and human development for 28 major Indian States during four time periods ranging over last two decades: 1983, 1993, 1999-00 and 2004-05. To construct Human Development Index for Indian States, we consider the National Human Development Report 2001 Methodology. The objective of this exercise to understand at what degree and extent the per capita income (as an indicator of economic growth) has influenced the human development across Indian States. To understand the rural – urban disparity in the achievement of human development, the Human Development Index is constructed for rural and urban areas separately for each of the States. The result shows that that per capita income is not translating into human well being. This perhaps in another way might signify the rising influence of other variables in determination of the HD achievements of a state. The result shows the need for further investigation to determine the underlying factors (other than per capita income) which influence HD achievements of a State.

Keywords: Economic Growth, Human Development, Human Development Index Methodology, Economic Liberalisation, Indian States

JEL Classification: O47, O15, E21, H75, C01

Suggested Citation

Mukherjee, Sacchidananda and Chakraborty, Debashis, Is There any Relationship Between Economic Growth and Human Development? Evidence from Indian States (May 31, 2010). Available at SSRN: https://ssrn.com/abstract=1624465 or http://dx.doi.org/10.2139/ssrn.1624465

Sacchidananda Mukherjee

National Institute of Public Finance and Policy ( email )

18/2, Satsang Vihar Marg
Special Institutional Area
New Delhi, Delhi 110067
India
+919868421239 (Phone)

Debashis Chakraborty (Contact Author)

Indian Institute of Foreign Trade ( email )

New Delhi, Delhi 110016
India
91 9818447900 (Phone)
91 11 26853956 (Fax)

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