ECONOMETRIC ANALYSIS OF THE RELATIONSHIP OF ECONOMIC GROWTH AND HUMAN DEVELOPMENT IN BRICS-T COUNTRIES

Abstract

Human development is an indicator of welfare other than national income; It is a multidimensional concept that includes education, health and good living standards along with income. It is concerned with the enrichment of human life rather than the wealth of countries, and focuses on the people themselves and the opportunities they have. It states that all people should be given more choice and more opportunities. Human development considers human well-being beyond income. The aim of this study is to examine the relationship between human development and urbanization and economic growth in BRICS-T (Brazil, Russia, India, China, Republic of South Africa and Turkey) countries with panel data analysis methods. In the study, human development index values for the period 1990-2019, urbanization and GDP per capita were used as variables. Westerlund (2006) panel cointegration test was used to test the relationship between the variables. The CCE (Common Correlated Effects) method developed by Pesaran (2006) was used to estimate the cointegration coefficients. Accordingly, the long-term coefficient of the human development index variable throughout the panel is statistically significant; It was determined that the long-term coefficient of the urbanization rate was not statistically significant. A 1% increase in the human development index in the said country group increases the per capita income by 8,8%.