Authors
Abstract
In many countries, achieving to the millennium development goals, such as sustainable economic growth, poverty reduction and human development enhancement are their important priorities. One of these goals is to improve the human development index that is used to compare the level of welfare. This study, using the annual data of selected MENA countries from 2000-2012 and by applying Dynamic Panel Data and GMM estimators, wants to determine the factors that affect on human development. For this purpose, trade variable (percapita import, percapita export and per capita trade) has been used in three separated models.
The results of the model with n-step GMM estimator of Arellano and Bond (1991) indicate that in all models, trade has positive and significant impact on human development.
If percapita import, export and trade are considered as explanatory variables in the model, the increase of $ 10,000 in these variables, will increase human development index by 0.029, 0.024, and 0.025 respectively.
Based on the results, educational expenditures, per capita health expenditure and foreign direct investment have also positive and significant effects on human development.
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