Advances and Applications in Statistics
Volume 26, Issue 2, Pages 97 - 112
(February 2012)
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A STUDY OF THE EFFECT OF WORLDWIDE GOVERNANCE AND CORRUPTION INDICATORS ON THE HUMAN DEVELOPMENT INDEX USING SPATIAL REGRESSION ANALYSIS
Medhat Mohamed Ahmed Abdelaal and Hisham Abdel-Tawab Mahran Morsy
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Abstract: The Human Development Index (HDI) is a composite index published annually by the UN Human Development Report Office, since 1990, which is designed to measure “human well being” in different countries. The index combines measures of life expectancy, school enrolment, literacy, and income to provide a measure of well-being and development broader than income alone. The objective of this paper is to study the effect of some worldwide governance and corruption indicators on the HDI in 2010; taking into account the spatial component of the regression analysis. Through the analysis of data for 125 countries, using classic OLS regression, the results show that there are significant effects of these variables on the HDI, and there is a significant spatial autocorrelation, therefore, spatial regression was used and it leads to improve the fitted model. |
Keywords and phrases: spatial regression, spatial autocorrelation, spatial lag, spatial error, Moran's statistic. |
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