Income and Capabilities: A Closer Look at Causation in International Development Models

Authors

Peter Sturgeon, Brigham Young University
Dr. Daniel Nielson, Brigham Young University

Keywords

income, international development models, human capabilities

College

Family, Home, and Social Sciences

Department

Political Science

Abstract

This project examines the relationship between increases in human capabilities and growth in GDP per capita. To do so, I utilize two-stage least squares regression analysis of cross-sectional data from over 140 countries. The results show that income and human capabilities have independent effects—with the effects of increases in human capabilities being greater. The role of human capabilities in increasing income is primarily realized through marginal increases in labor productivity. The findings suggest that development efforts focusing directly on education will be the most effective at alleviating poverty and empowering individuals.

Recommended Citation

Sturgeon, Peter and Nielson, Dr. Daniel (2013) "Income and Capabilities: A Closer Look at Causation in International Development Models," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 378.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/378