The relationship between Gross Domestic Product and Human Development Index: Evidence from 11 Middle East countries

Abstract

This study explores the nexus between Gross Domestic Product and the Human Development Index in the case of eleven selected Middle East countries. Panel data has been utilized from the period of 1991-2017. By using fixed and random effect models, the Human Development Index is taken as a dependent variable and gross domestic product, population, unemployment and inflation as independent variables. The result supports the random-effect model. The finding shows that the Human Development Index has a negative and significant relationship between Gross Domestic Product and Inflation. With the dependent variable, the population has an insignificant relation. Moreover, unemployment has a positive relationship with the Human Development Index.