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Empirical Study on the Determinants of Human Development in the Indian States

Despite having high economic growth and foreign capital inflows from all over the world, the position of India in the global Human Development Index (HDI) is very disgusting (ranked at 131 out of 188 nations). Therefore, the present study has made an attempt to empirically investigate the relationsh...

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Bibliographic Details
Published in:Journal of Economic Policy and Research 2017-04, Vol.12/13 (2/1), p.161-181
Main Authors: Jena, Pratap Kumar, Khilar, Nibedita
Format: Article
Language:English
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Summary:Despite having high economic growth and foreign capital inflows from all over the world, the position of India in the global Human Development Index (HDI) is very disgusting (ranked at 131 out of 188 nations). Therefore, the present study has made an attempt to empirically investigate the relationship between Human Development and its determinants both at country level and state-level. Those states GDP is growing faster than other states, their social sector expenditure is lesser. Kerala is the number one state in human development in India despite it having less growth compared to Maharastra, Haryana, etc. The study finds that human development is positively related to GDP and negatively with GFD. The social sector expenditure is positive but not significant which means social expenditure is not enough in India to increase the human development. There is causality from GSDP and SSE to HDI in Indian states but bidirectional causality exists between GFD and HDI in Indian states.
ISSN:0975-8577