Difference between per capita income and human development index
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Using cross-section data in regression analysis, this paper examines the relationship between per capita real GDP and the human development index in high, medium and low human development countries. The sensitivity of the human development index to changes in per capita GDP is found to be highest in low human development countries. An ‘inverted U’ type relationship between per capita GDP and the human development index appears to be valid for medium human development countries.
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