Inclusive Human Development and Governance Nexus: Causality Analysis of Selected Asian Countries

Stylianou, Tasos and Nasir, Rakia and Waqas, Muhammad (2023) Inclusive Human Development and Governance Nexus: Causality Analysis of Selected Asian Countries. Economies, 11 (3). p. 97. ISSN 2227-7099

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Abstract

This study investigates the role of governance in inclusive human development in the case of twenty-four selected Asian countries, using panel data for the time period from 2010 to 2017. The inequality-adjusted human development index, developed by the United Nation Development Program, has been used as a proxy for inclusive human development. In addition, six indicators of governance have been used as independent variables in a regression model, along with three control variables. We have tested the stationarity of our data using panel unit root tests such as Leviv-Lin-Chu and Augmented Dickey Fuller. The Pearson correlation matrix helps us find out the correlation among variables. The findings show a mixed level of correlation among the variables (i.e., high, low, and moderate). Furthermore, our results show that a strong causal relationship among the variables exists. One of the most important findings is that there is bi-directional causality between the inclusive human development index (IHDI) and development expenditure. The IHDI causes more government investment in development projects, whereas more development expenditure in the country achieves a higher IHDI. Trade openness and development expenditure have a bi-directional causal relationship. Finally, economic governance causes political governance in the case of our selected Asian countries.

Item Type: Article
Subjects: EP Archives > Multidisciplinary
Depositing User: Managing Editor
Date Deposited: 17 Jun 2023 04:41
Last Modified: 26 Sep 2023 05:41
URI: http://research.send4journal.com/id/eprint/2382

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