Association between Human Development and Economic Growth: A Post-reforms Empirical Study of Karnataka

Description

Page: 206-210

Vaishali¹, Shruti Rastogi², and Harsh Gandhar³ (Department of Evening Studies-MDRC, Panjab University, Chandigarh¹, Department of Economics, Panjab University, Chandigarh², and Department of Economics, University School of Open Learning, Panjab University, Chandigarh³)

This research paper seeks to examine the relationship between economic growth and human development in the Indian state of Karnataka for the post-reform period, i.e., from 1991 to 2019 by tracing two chains: one from Economic Growth (EG) to Human Development (HD) and other from Human Development (HD) to Economic Growth (EG). The study’s overarching goal is to ascertain whether or not the per capita net state domestic product at constant prices, 2011-2012 (a proxy for EG) has any discernible effect on the citizens’ human development index (a proxy for HD). For the analysis, we have used time-series data. Our study is based on secondary data. Econometric techniques like Vector Autoregressive Model (VAR) including Unit Root Test, Granger Causality Test and Impulse Response have been used to assess the relationship between EG and HD. The empirical findings demonstrated the existence of a significant two-way relationship between HD and EG in Karnataka.