The Effect of Economic Growth on Human Development Index in Selected MENA Countries: Approaches PVAR

The concept of human development to expand the range of choices, opportunities, people empowerment and benefit from the freedom that is conducive to the preservation of human values. Human Development Index is a standard tool for measuring human development. This index is presented in the annual Human Development Report 1990. Human development is a prerequisite for achieving long-term goals such as economic growth, income distribution and employment. In this study, an attempt is made to investigate the effects of economic growth on human development index using PVAR, Impulse Responses and Variance Decomposition for 13 MENA countries from 2000 to 2010. The findings of the study showed that economic growth have positive effects on human development index.