Political Regime and Human Capital: A Cross-Country Analysis

We examine the relationship between different dimensions of the political regime in place and human capital using a two-step structural equation model. In the first step, we employ factor analysis on 16 human capital indicators to construct two new human capital measures (basic and advanced human capital). In the second step, we estimate the impact of our political variables on human capital, using a cross-sectional structural model for some 100 countries. We conclude that democracy is positively related to basic human capital, while regime instability has a negative link with basic human capital. Governance has a positive relationship with advanced human capital, while government instability has a negative link with advanced human capital. Finally, we also find an indirect positive effect of governance and democracy on both types of human capital through their effect on income.     

Human Capital Outflow and Economic Misery: Fresh Evidence for Pakistan

This paper visits the impact of economic misery on human capital outflow using time series data over the period of 1975–2012. We have applied the combined cointegration tests and innovation accounting approach to examine long run and causal relationship between the variables. Our results affirm the presence of cointegration between the variables. We find that economic misery increases human capital outflow. Foreign remittances add in human capital outflow from Pakistan. The migration from Pakistan to rest of world is boosted by depreciation in local currency. Income inequality is also a major contributor to human capital outflow. The present study is comprehensive effort and may provide new insights to policy makers for handling the issue of human capital outflow by controlling economic misery in Pakistan.

     

Economic Theory and Subjective Well-being: Mexico

Several studies have been conducted on the topic of well-being. Most of them, however, have been done in industrialized countries where income is distributed relatively more equitatively and the population tends to be more homogeneous. This paper studies the relationship between subjective and economic well-being in Mexico, a country where the economic differences among the population are more clearly marked.

According to the economic definition of well-being, higher levels of income are associated with higher levels of well-being through greater levels of material consumption. Taking into consideration this definition, it is worth asking just how important income is for an individual's happiness?Existing studies in psychology have found a positive correlation between economic well-being (socioeconomic status) and subjective well-being (happiness). However, this positive relationship is weak and a large percentage of human happiness remains unexplained.

Although the mentioned studies make a good approximation of the existing relationship between income and happiness, the characteristics or specification of the function that generates the relationship between these two variables is often assumed to be linear and positive. The main objective of this paper is to investigate further the relationship between subjective and economic well-being. In this study different specifications and approaches are used to approximate the relationship between these variables.

An empirical analysis is made from the results of a survey conducted in two Mexican cities. The investigation studies the impact of demographic, social, and economic variables on subjective well-being in Mexico. Several hypotheses are tested to identify the relationship between household income and individual well-being. It is found that income does not have a strong influence on neither well-being nor on the probability of happiness. However, people tend to overstress the impact that additional income would have on their subjective well-being. This fact could explain the importance that people place on increasing their income level, and it could possibly explain the relative sense of dissatisfaction once a higher income level is achieved.

The relationship between income and the sense of basic need satisfaction is also explored. A main assumption in economic theory suggests the existence of a direct relationship between these variables; however, empirical results show this relationship to be extremely weak. Results indicate that subjective well-being is positively related to the sense of basic need satisfaction but not to income.

     

Human Development and National Culture: A Multivariate Exploration

We examine the relationship between different aspects of human development and Hofstede’s six dimensions of national culture. Using multivariate regression and canonical correlation analysis, we show that all the dimensions of national culture except masculinity have a significant impact on human development, and that the overall strength of the association between the two groups of variables is a high positive one. In general, the direction of the influence of the national culture variables on economic growth differs from the manner they influence other variables, which reinforces the fact that economic growth does not always translate into true people-centred development. Furthermore, the national culture dimensions do not explain much of the variation in a number of health indicators.     

An Econometric Analysis of the Relationship Between Millennium Development Goals,Economic Growth and Financial Development in South Africa

The relationship between financial development, economic growth and millennium development goals are unsettled in the literature. Using four indicators of financial development, this paper studies the link between the three variables in South Africa. In general, per capita income improves per capita spending on education in the short run. However, total domestic credit to GDP ratio decreases spending on education. There are highly significant long run relationships among the variables. Improving access to private sector credit and increasing per capita incomes are associated with improvement in health outcomes in South Africa. There are no short run nor long run relationships between household spending on clothes, economic growth and financial sector development. Improved private sector credit also improves household spending on food. In general, there are long run relationships between per capita spending on food, per capita income and financial sector development.

     

Social Health Indicators and Economic Growth: Evidence from East Asia and Pacific,Middle East and North Africa,South Asia,and Sub-Saharan Africa

The objective of this study is to empirically investigate a two-way statistical relationship between the social health indicators and economic growth in the context of four major regions of the world i.e., East Asia and Pacific, Middle East and North Africa (MENA), South Asia and Sub-Saharan Africa. To recognize the relationship between the two variables, a time series, co-integration and Granger causality tests have been employed. Aggregate secondary data pertaining to these four regions from 1975 to 2011 on economic growth and social health indicators i.e., infant mortality, child abuse, child poverty, unemployment, weekly wages, health insurance coverage, teenage suicide, teenage drug abuse, high school dropouts, poverty, out-of-pocket health costs, homicides, alcohol related traffic fatalities, food insecurity, income inequality, HIV/AIDS, tuberculosis, basic health units and rural health centers has been used for analysis. This study evaluates four alternative but equally plausible hypotheses, each with different policy implications. These are: (1) social health indicators Granger cause economic growth, (2) economic growth Granger cause social health indicators (the conventional view), (3) There is a bi-directional causality between the two variables and (4) Both variables are causality independent (although highly correlated). The empirical results only moderately support the conventional view that economic growth has significant long run casual effect on social health indicators in East Asia and Pacific, MENA, South Asia and Sub-Saharan Africa. The present study find evident of unidirectional causality running towards economic growth to social health indicators, although, there are some bidirectional causality also exists between the variables. The percentage of unidirectional causality between economic growth and social health indicators is larger than bidirectional or neutrality hypothesis.     

Effective International Tourism Management: A Strategic Approach

The objective of the study was to explore the relationship between international tourism indicators, crime rate, and vulnerability in a panel of 16 tourist-oriented countries over the period of 1990–2014. The study constructed a vulnerability index by using three socioeconomic factors, (1) poverty, (2) income inequality, and (3) unemployment rate. The results show that crime rate and vulnerability both decreases international tourism demand, which were mediated through inadequate education and health resources. Trade openness moderately supported the international tourism demand under the crime rate and vulnerability index. The results confirmed the crime Kuznets curve that turned into inverted U-shaped relationship between crime rate and per capita income, while this relationship was not confirmed for vulnerability index. The panel causality relationships confirmed the unidirectional causality between crime-vulnerability and international tourism. Growth-fueled tourism demand was analyzed under a crime and vulnerability index. The study concludes that international tourism is an implied solution to reduce human costs by involving tourists to in pleasure activities to at tourists’ destinations.     

中国城市化与二氧化碳排放量的协整分析

中国经济未来仍将保持良好的发展态势,经济增长的同时常常伴随着城市化过程,含碳能源的消费带动城市化进程的同时,也使得大气中的二氧化碳含量明显增加,发展与环保之间的关系值得权衡。在已有的理论基础上,采用1978～2006年的相关统计数据对中国城市化与含碳能源消费发生的二氧化碳排放量进行协整分析,同时建立误差修正模型,并运用Granger因果关系检验的方法,反映经济发展过程中城市化与二氧化碳排放量之间的规律性变化。城市化与二氧化碳排放量之间存在着长期稳定的均衡关系,二期滞后时,具有协整关系。同时Granger因果关系检验结果表明,中国的城市化进程不同于发达工业化国家,与二氧化碳排放量之间不具有理论上的双向因果关系。二期滞后时,城市化是二氧化碳排放量的Granger原因,但后者不是前者的原因,对其不具有反馈效应。     

The limited effect of increasing educational attainment on childlessness trends in twentieth-century Europe,women born 1916–65

During the twentieth century, trends in childlessness varied strongly across European countries while educational attainment grew continuously across them. Using census and large-scale survey data from 13 European countries, we investigated the relationship between these two factors among women born between 1916 and 1965. Up to the 1940 birth cohort, the share of women childless at age 40+ decreased universally. Afterwards, the trends diverged across countries. The results suggest that the overall trends were related mainly to changing rates of childlessness within educational groups and only marginally to changes in the educational composition of the population. Over time, childlessness levels of the medium-educated and high-educated became closer to those of the low-educated, but the difference in level between the two better educated groups remained stable in Western and Southern Europe and increased slightly in the East.     

The Importance of Variables in Composite Indices: A Contribution to the Methodology and Application to Development Indices

The paper examines the issue of weights and importance in composite indices of development. Building a composite index involves several steps, one of them being the weighting of variables. The nominal weight assigned to a variable often differs from the degree to which the variable affects the scores of the overall index. The newly suggested notion of importance is based on the idea that an important indicator, if omitted from the index, causes large changes in countries’ results. We propose a method of measuring the importance and apply it to inequality variables in composite indices of development. The results show a low importance for most inequality variables, and for some of them, a large discrepancy between the nominal weights and the importance. We argue that the importance of variables should be considered in the process of index construction. This may imply a modification of the index when there is a large discrepancy between the nominal weights and importance and when the importance of some variables is extremely low. Whether any such modification is justified must be decided within the context of the particular index.

     

Does globali zation affect human well-being?

The prevailing theorizing of globalization’s influence of human well-being suggests to assess both the favorable and unfavorable outcomes. This study formulates a dialectical model, adopts a comprehensive globalization measure and uses a three-wave panel data during 1980–2000 to empirically test direct and indirect effects of global flows’ human consequences. The outcomes from random effect modeling reveal significant positive impacts of political globalization, whereas economic and social globalization do not generate favorable influences when development level and regional differences are operated as controls. The overall globalization index is found to generate expected favorable influence on an overall human development index. Within developing countries, globalization’s human influence was not as significant as in industrial countries, however. Several hypotheses about globalization’s potential negative effects through increasing societal instabilities and reducing state power and social spending are not supported in analysis. It is concluded that globalization identified by increased global flows and exchanges contributes rather than hampers progress in human welfare.     

A Four-Country Study on the Relationship Between Parental Educational Homogamy and Children’s Health from Infancy to Adolescence

This study explores the relationship between parental educational similarity—educational concordance (homogamy) or discordance (heterogamy)—and children’s health outcomes. Its contribution is threefold. First and foremost, I use longitudinal data on children’s health outcomes tracking children from age 1 to 15, thus being able to assess whether the relationship changes at key life-course and developmental stages of children. This is an important addition to the relevant literature, where the focus is solely on outcomes at birth. Second, I look at different health outcomes, namely height-for-age (HFA) and BMI-for-age (BFA) z-scores, alongside their dichotomized counterparts, stunting and thinness. Third, I conduct the same set of analyses in Ethiopia, India, Peru, and Vietnam, thus providing multi-context evidence from countries at different levels of development and with different socio-economic characteristics and gender dynamics. Results reveal important heterogeneity across contexts. In Ethiopia and India, parental educational homogamy is associated with worse health outcomes in infancy and childhood, while associations are positive in Peru and, foremost, Vietnam. Complementary estimates from matching techniques show that these associations tend to fade after age 1, except in Vietnam, where the positive relationship persists through adolescence, thus supporting the homogamy-benefit hypothesis not only at birth, but also across the early life course. Insights from this study contribute to the inequality debate on the intergenerational transmission of advantage and disadvantage and shed additional light on the relationship between early-life conditions and later-life outcomes in critical periods of children’s lives.

     

The Role of Legal System and Socioeconomic Aspects in the Environmental Quality Drive of the Global South

The increasing environmental challenges associated with the Global South is potentially associated with the socioeconomic changes amid potential institutional deficiencies such as the weak or inefficient environmental regulation. Thus, this twenty-first century challenge has increasingly necessitated more climate action from the Global South as championed by the developed economies. On this note, examines the environmental aspects of law and order (LO) vis-à-vis legal system and socioeconomic (SE) indexes of the Political Risk Services for a panel of 80 selected Global South countries over the period 1984–2014. Additionally, by employing the economic growth vis-à-vis the Gross Domestic Product per capita (GDPC) as additional explanatory variable, the study employs the more recent experimental techniques of Mean Group Estimator (MG), the Augmented Mean Group Estimator (AMG) and the Common Correlated Effects Mean Group (CCEMG). Importantly, with the more efficient CCEMG, the study found that the strength of the legal system in the Global South (although not statistically significant) is a crucial factor to mitigated carbon emission in the panel countries. However, the study found that an improved socioeconomic condition and economic expansion is detrimental to the Global South’s environmental quality. Furthermore, the Granger causality result implied that each of LO, SE and GDPC exhibits a feedback relationship with carbon emissions. Hence, the study suggests the need for a stronger implementation of environmental regulations through a revitalized legal system and some concerted socioeconomic policies that address poverty and unemployment among other factors.

     

Inequality in Human Development: An Empirical Assessment of 32 Countries

One of the most frequent critiques of the HDI is that is does not take into account inequality within countries in its three dimensions. In this paper, we apply a simply approach to compute the three components and the overall HDI for quintiles of the income distribution. This allows a comparison of the level in human development of the poor with the level of the non-poor within countries, but also across countries. This is an application of the method presented in Grimm et al. (World Development 36(12):2527–2546, 2008) to a sample of 21 low and middle income countries and 11 industrialized countries. In particular the inclusion of the industrialized countries, which were not included in the previous work, implies to deal with a number of additional challenges, which we outline in this paper. Our results show that inequality in human development within countries is high, both in developed and industrialized countries. In fact, the HDI of the lowest quintiles in industrialized countries is often below the HDI of the richest quintile in many middle income countries. We also find, however, a strong overall negative correlation between the level of human development and inequality in human development.     

Cross-Cultural Analyses of Determinants of Quality of Life and Mental Health: Results from the Eurohis Study

Recent projects on international instrument development have produced a wide array of health indicators that may be used for cross-cultural field-testing, however more information on their cross-cultural performance in relation to health determinants is necessary. The current study approaches one step for international conceptual validation by analysing the association between various health determinants and different types of health outcomes (mental health, quality of life) across a range of countries or geographical areas. The current study is based on the EUROHIS project that has been conducted in a sample of 4849 adults across 10 European countries. Results highlight that interactions between health determinants with subjective mental health, general health and quality of life (QoL) differ between Western European countries, Eastern European countries and the Newly Associated States as well as Israel. Using a MIMIC model approach, we were able to show that the impact of each of the sociodemographic variables cannot be interpreted on the basis of its single loading but only seeing the interacting with other indicators. Future studies should include sociodemographics in MIMIC models in each latent factor before carrying out regressions on a larger scale. Future investigations will require larger and representative samples to (a) test models on latent factors of mental health and QoL and (b) on the basis of these findings test overall structural models across countries.     

Welfare State Development,Individual Deprivations and Income Inequality: A Cross-Country Analysis in Latin America and the Caribbean

Several scholars have confirmed the role that the welfare state (WS) plays in reducing poverty, promoting equality and ensuring the common wellbeing. One of the limitations of the scholarship has been the conceptualization and operationalization of the WS and poverty as one-dimensional variables. The purpose of this paper is to examine the relationship between welfare state development, single-dimensions deprivations and income inequality in Latin America and the Caribbean, before and after controlling for demographic and cyclical factors. The WS is operationalized as a one-dimensional variable, but also taking into account its multidimensional nature. Three individual deprivations suffered by people on poverty and two income inequality indicators are used as dependent variables. Three pooled time-series cross-section regression analyses with panel-corrected standard errors models were carried out on 18 countries in the region around 2000, 2005 and 2010. This paper shows that the development of social-welfare programs and institutions seems to be an effective way of tackling individual deprivations suffered by people on poverty in the region. On the other hand, the WS development didn’t appear to be effective to reduce income inequality. The outcomes of welfare institutions appear to be the pivotal dimension to reduce income inequality and income deprivations in the region.     

Application of Different Techniques of Factor Analysis to Develop Neighborhood Social Capital Rating Scale

Composite indicators are widely used to determine the ranking of countries, organizations or individuals in terms of overall performance on multiple criteria. Their calculation requires standardization of the individual statistical criteria and aggregation of the standardized indicators. These operations introduce a potential propagation effect of extreme values on the calculation of the composite indicator of all entities. In this paper, we propose robust composite indicators for which this propagation effect is limited. The approach uses winsorization based on a robust estimate of the distribution of the sub-indicators. It is designed such that the winsorization affects only the composite indicator rank but has no effect on the entities ranking in each sub-indicator. The simulation study documents the benefits of distribution-based winsorization in the presence of outliers. It leads to a ranking that is closer to the clean data ranking when compared to the ranking obtained using either no winsorization or the traditional winsorization based on empirical quantiles. In the empirical application, we illustrate the use of winsorization for ranking countries based on the United Nations Industrial Development Organization’s Competitive Industrial Performance index. We show that even though the sub-indicator ranking does not change, the robust winsorization approach has a material impact on the ranking of the composite indicator for countries with large discrepancies in the scores of the sub-indicators.

     

The political ecology of disaster: An analysis of factors influencing U.S. tornado fatalities and injuries, 1998–2000

This study examines casualties from tornadoes in the United States between the years 1998 and 2000. A political model of human ecology (POET) was used to explore how the environment, technology, and social inequality influence rates of fatalities and injuries in two models. Data were drawn from four sources: John Hart's Severe Plot v2.0, National Weather Service (NWS) Warning Verification data, Storm Prediction Center (SPC) watch data, and tract-level census data. Negative binomial regression was used to analyze the causes of tornado fatalities and injuries. Independent variables (following POET) are classified in the following manner: population, organization, environment, and technology. Rural population, population density, and household size correspond to population; racial minorities and deprivation represent social organization; tornado area represents environment; and tornado watches and warnings, as well as mobile homes, correspond to technology. Findings suggest a strong relationship between the size of a tornado path and both fatalities and injuries, whereas other measures related to technology, population, and organization produce significant yet mixed results. Census tracts having larger populations of rural residents was, of the nonenvironmental factors, the most conclusive regarding its effects across the two models. The outcomes of analysis, although not entirely supportive of the model presented in this study, suggest to some degree that demographic and social factors play a role in vulnerability to tornadoes.     

A New Multidimensional Measure of Development: The Role of Technology and Institutions

This paper constructs four structural indices by using 42 socioeconomic variables for 129 countries and the 10 years period from 2003 to 2012. Each structural index can be considered as a measure of a certain dimension of development. The first two indices are the most useful in explaining gaps in development across countries. The first captures the role of technology and institutional quality while the second provides a measure of the basic level of development. The contrast between them signifies that the notion of development is not only multidimensional, but also changing with the stage of development. These two indices are combined to form a development index (DI). A comparison of DI to income per capita and the Human Development Index highlights the importance of institutions in the transition of countries from merely having high income to full development. A methodological contribution of the paper is to use a Jackknife approach within the factor analysis routine to test for the significance of the extracted factors/indices.