Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. These two-way chains can generate self-reinforcing, virtuous or vicious cycles of development, as well as identifying lop-sided performers. Over time we find that lop-sided development seldom persists: countries initially in favor of economic growth lapse into the vicious category, while countries favoring human development advance into the virtuous category. This finding implies that, although both human development and economic growth should be jointly promoted, human development should be given sequential priority. Terms of use: Documents in

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper analyzes the role of the urban informal sector in a developing country in relation to the performance of agriculture and other rural activities, on the one hand, and that of urban formal sector activities, on the other. It decomposes the sectors into traditional and modernizing components, traceable to production and consumption linkages with the rest of the economy as well as the character of government interventions over time.The paper contrasts success cases a la Taiwan in which the overall size of the urban informal sector remains modest, the modernizing sub-sector grows in relative importance and the end of overall labor surplus is reached rather early, with non-success cases a la the Philippines in which rapid rural-urban migration enhances the overall size of the urban informal sector, the traditional sub-sector grows relatively and the end of the labor surplus condition is substantially delayed.

This paper explores the two-way relationships between Economic Growth (EG) and Human Development (HD), building on an earlier work by Ranis, Stewart, and Ramirez (2000). Here, we show that HD is not only a product of EG but also an important input to it. The paper develops new empirical strategies to estimate the strength of the two-way chains connecting HD and EG. Building on existing growth literature, we explore the empirical determinants of positive growth trajectories running from HD to EG and find that HD plays an essential role in explaining growth trajectories. Our findings point to the empirical relevance of endogenous growth models in general, and threshold effect models in particular. We also develop a measure of the strength of the EG to HD relationship and explore some of its empirical determinants. A strong sequencing implication of our findings is that HD must be given priority for the achievement of both higher EG as well as HD.

The well-known Human Development Index (HDI) encompasses only three rather basic aspects of human welfare. This paper aims to go beyond this, by identifying 11 categories of human development. We next propose plausible candidates as indicators of these categories. We then estimate correlations among the indicators within each category, discarding those that are highly correlated with others. This left 39 indicators to encompass the categories. Of these, eight indicators are highly correlated with the HDI and may therefore be represented by it. But 31 are not highly correlated, suggesting that a full assessment of human development requires a much broader set of indicators than the HDI alone. Following the same procedure, we find that under-five mortality rates perform equally as well as the HDI, and income per capita is less representative of other dimensions of human development. The HDI (and the other two broad indicators) are shown to be worse indicators of the extended categories of human development for OECD countries than for developing countries.Human development, Economic growth, Comparative country studies,