A Study Comparing Economic Development and Human Development as Measures of Standard of Living
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There has been much debate as to which measure is best when studying economic development of a nation. Our cross-sectional study of originally 87 and then 150 countries in the year 2015 compares the Human Development Index (HDI) and GDP per capita in regressions with five explanatory variables which have been chosen as comprehensive measures of our interpretation of standard of living: unemployment rate, gross domestic savings rate, fertility rate, household final consumption expenditure, and infant mortality rate. Multiple regression analysis shows that the coefficients of the explanatory variables result in greater changes in GDP per capita rather than HDI. However, the R-squared value of the regression with HDI is higher than that of GDP per capita.