• Debesh Bhowmik Indian Economic Association (IEA) & The Indian Econometric Society (TIES), India


In this paper, the author tried to relate HDI (Human Development Index) with GDP (Gross Domestic Product), education expenditure, health expenditure and unemployment rate in ASEAN-9 during 1990-2016 with fixed effect panel regression model, Fisher-Johansen cointegration and panel VECM (Vector Error Correction Model) respectively. The author found that one percent increase in GDP, education expenditure, and unemployment rate per year led to 0.105% increase, 0.028% increase and 0.027% decrease in HDI per year significantly and one percent increase in health expenditure led to 0.0124% increase in HDI insignificantly in ASEAN (Association of Southeast Asian Nations) during 1990-2016. Panel cointegration suggested that there are three cointegrating equations in which two are moving towards equilibrium. In panel VECM, it was found that-

  • There is significant long run causality from health expenditure percentage of GDP and unemployment rate to the Human Development Index (HDI) of the ASEAN during 1990-2016.
  • There is significant long run causality from health expenditure percentage of GDP and unemployment rate to the educational expenditure % of GDP of the ASEAN during 1990-2016.
  • There is also a significant short run causality from education expenditure to GDP, from HDI to education expenditure and from GDP to unemployment rate of ASEAN during 1990-2016


Human Development Index, Gross Domestic Product, Fixed Effect Regression, Panel Cointegration, Panel Vector Error Correction


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How to Cite

Debesh Bhowmik. (2023). FACTORS OF HUMAN DEVELOPMENT INDEX IN ASEAN: PANEL COINTEGRATION ANALYSIS. International Journal on Recent Trends in Business and Tourism (IJRTBT), 3(1), 8-15. Retrieved from https://ejournal.lucp.net/index.php/ijrtbt/article/view/88