Toggle navigation. Home Vol 2, No 2 Elistia. Abstract Economic growth is an important factor in the economic development of a country. There is a number of factors that can increase economic growth namely human development. The influence of human power resources is shown in the value of HDI which is able to influence the level of economic growth in the value of its GDP.
Several literature studies such Ciobanu Oana , Swaha Shome et. Economic growth makes it possible to reach a high level of human development, on the one hand, increasing levels of human development leading to increase opportunities for economic growth. After plotting their data in charts and graphs, they will analyze their results. This assignment is designed to help students: Have a sense of the level of development in these countries and understand the role of education, health and income in economic development.
Think critically about how the income and education and health variables are calculated. Become aware of the fact that small changes in the parameter values can change ranking of the countries significantly. Finally analyze their findings effectively presenting the data in an appropriate manner tables, and graphs. This assignment was designed for a class of 25 students who have taken principles of economics.
They have had lectures on concepts of development and the relationship between economic growth and development. In addition, students would require basic spreadsheet skills to complete the assignment.
Critics argue that the HDI assigns weights to certain factors that are equal trade-offs, when these measurements may not always be equally valuable. The HDI was implemented in and the values it assesses are determined as follows:.
For example, countries could achieve the same HDI through different combinations of life expectancy and GNI per capita.
This would imply that a person's life expectancy has an economic value. An additional year of life would add to the GNI and would thus be different in countries with different GNI per capita. It also correlates factors that are more common in developed economies.
For example, a higher level of education would tend to lead to higher GNI per capita. Critics argue the benefit or lack thereof of including two highly correlated values when perhaps one would be a better indicator of a country's well-being. The HDI also fails to take into account factors such as inequality, poverty , and gender disparity. A country with a high value for GNI per capita would indicate a developed country, but what if that GNI is reached by marginalizing certain genders or ethnic classes?
And what if that GNI is achieved by a small percentage of the population that is wealthy and therefore ignores the poor? Furthermore, the values of the factors that make up the HDI are bounded between 0 and 1. This means that certain countries that already have high GNIs, for example, have little room to improve in terms of GNI score even if their GNI continues to grow and improve.
This same parameter affects the logic of the life expectancy score. Though the HDI is designed to consider other factors besides wealth, allowing a multifaceted examination of global prosperity and emerging market nations, the weaknesses of this measurement lead some critics to challenge its practicality for use in establishing foreign policy. Other factors that influence prosperity are not sufficiently captured by this measurement either.
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