The granger causality relationship between human development and economic growth

Abstract

The Human Development Index (HDI), which measures a country’s human development level, considering the health, education and income indicators of countries has been published in the Human Development Report each year since 1990 by the United Nations Development Programme. Norway, which is a highly developed country, was at the top of the Human Development Index. Therefore, the aim of this study is to evaluate Norway’s human development performance. In this context, the relationship between human development and economic growth has been examined at empirical level for Norway for the period between 1990-2017. In the study, firstly, ADF and PP unit root tests were performed. Then, Granger causality analysis was applied. According to the results of Granger causality analysis there is a one-way causality relationship from human development to economic growth.