Research using world development

indicators
Introduction

Key indications of a country's progress toward its development objectives include the
world's economic, social, and environmental circumstances, or world development indicators
(WDIs) (World Bank, 2019). Poverty, health, education, gender equality, and environmental
sustainability are just few of the many economic and social aspects covered by WDIs. Research
that makes use of global development indicators is crucial for monitoring attainment of
development targets and pinpointing problem areas that need further study.

Despite the widespread availability of WDIs, further study is needed to better understand
the dynamics of development using these indicators. The connection between economic
expansion and personal growth is one area that may need further study. The degree to which
increases in GDP translate into gains in human development indices like life expectancy and
literacy is a topic of continuous discussion.

There has been a lot of research done on the correlation between GDP expansion and
improvements in living standards in recent years. Panel data analysis is used by Tchamyou et al.
(2019) to look at how GDP growth and HDI in Africa are connected. The authors conclude that
human development has a beneficial effect on economic growth, arguing that policies that place
a premium on human development are essential for fostering long-term expansion of the
economy. Similarly, Arora and Vamvakidis (2005) find that human development is a crucial
driver of economic growth in emerging nations when they investigate the connection between
the two.

Using global development indices, this research will examine the connection between
GDP growth and HDI to add to the existing literature on development. Here, we'll look at the
question of whether or not economic growth alone is enough to boost human development
indicators, or whether other elements are also required for such advances to be maintained over
time. We can learn more about the dynamics of development and find ways to promote
sustainable and equitable development outcomes by studying global development indicators.

Research Questions

1. To what extent do poor and middle-income nations benefit from investment, education,

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 and high-quality institutions, and how does this affect economic growth?
2. Is it true that trade liberalization aids developing and middle-income nations?
3. Does outside assistance help economies expand in developing and transitioning nations?

Hypothesis of the study

H1: Poor and middle-income nations benefit significantly from investment, education, and high-
quality institutions, and this has a positive impact on economic growth.

H2: Trade liberalization has a positive impact on economic growth in developing and middle-
income nations.

H3: Outside assistance has a positive impact on economic growth in developing and
transitioning nations.

Gap of the literature

There is a large knowledge gap about the connection between economic growth and
human development in low- and middle-income countries, despite the availability of data from
global development indices. To fill this knowledge vacuum, researchers analyzed the effects of
foreign aid on economies in emerging and transitional countries, as well as the effects of
investment, education, and high-quality institutions on economic development.

Research Significance

The sustainable development goals (SDGs) of inequality and poverty are among the most
significant challenges facing the world today. Poor and middle-income nations are particularly
vulnerable to these challenges, making it crucial to identify the key drivers of economic growth
and human development in these countries. This study is significant since it addresses these
SDGs by examining the impact of investment, education, high-quality institutions, trade
liberalization, and outside assistance on economic growth and human development.

Contribution

This study contributes to the literature by addressing a specific gap in the existing

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research on the relationship between economic growth and human development in poor and
middle-income nations.

Rationale

The proposed study seeks to answer three critical research questions that address
significant gaps in the literature on the relationship between economic growth and human
development in poor and middle-income nations.

Innovation

The study advances knowledge by addressing a critical gap in the literature and using
WDI data, which is a rich source of information. The study also offers insights into the impact of
these factors on sustainable development, which is crucial for policymakers and development
practitioners.

Feasibility

This study is feasible since it utilizes readily available data from the WDI, which is easily
accessible. The proposed research plan is also feasible since the study's research questions and
objectives are specific and well-defined.

2. Approach

For the proposed research project, the World Development Indicators (WDI) dataset will
be used as the primary data source. The WDI dataset is compiled by the World Bank and
provides a comprehensive overview of socio-economic indicators for countries around the world.
The dataset covers a wide range of topics such as education, health, poverty, inequality,
infrastructure, and governance.

The dataset is observational in nature and covers a large number of countries over a
period of several decades. The sampling strategy involves the inclusion of all countries for which
data is available, resulting in a sample size of over 200 countries. The data is collected annually,
and the latest available data will be used for analysis. The study design for this project is a cross-
sectional analysis of the relationship between investment, education, institutions, and economic

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growth for a wide range of countries.

For collecting data from the World Development Indicators (WDI) dataset, we will use
the World Bank's API or download the dataset directly from their website. The API allows you
to access the data programmatically and can be a more efficient way to collect data if you are
working with a large number of indicators or countries.

To use the API, we will need to obtain an API key from the World Bank's website. Once
you have the API key, we will use a programming language such as Python to make API
requests and retrieve the data. Here is some example Python code to retrieve data for the
indicator "GDP per capita" for the United States from the World Bank API:

import requests

url = "http://api.worldbank.org/v2/country/USA/indicator/NY.GDP.PCAP.CD"

params = {

"format": "json",

"per_page": 5000,

"date": "2000:2020"

response = requests.get(url, params=params)

data = response.json()

print(data)

This code sends a request to the API to retrieve the GDP per capita data for the United
States from 2000 to 2020. The data is returned in JSON format, which can be easily processed in
Python.

Alternatively, we will download the WDI dataset directly from the World Bank's website.

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The dataset is available in various formats, including CSV and Excel. We will use a software
such as Excel or Python's panda’s library to manipulate and analyze the data.

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 Key Variable

Our dependent variable of the study is economic growth and independent variables are trade liberalization, education, outside
assistance, institutions, and investment. Control variables will be, population size, natural resource endowments, inflation rate, and
political instability.

Indicators 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Access to electricity (% 78.43325 81.53811 82.1693 82.67428 83.86714 85.18352 86.27389 87.44913 87.99894 88.61852
of population) 9

Access to electricity, 66.57788 71.9325 72.5165 72.65129 73.81963 76.29611 79.85917 81.81348 82.92075 81.27876
rural (% of rural 1
population)

Access to electricity, 94.50854 95.00139 95.0304 95.12205 95.02039 95.69256 96.36559 96.54403 96.85461 96.39767
urban (% of urban 5
population)

Account ownership at a 41.66 .. .. 54.99 .. .. 62.98 .. .. ..

financial institution or
with a mobile-money-
service provider (% of
population ages 15+)

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Adjusted net 88.53445 88.69324 88.8957 88.96054 88.67112 88.75618 88.69143 88.62699 .. ..
enrollment rate, 3
primary, female (% of
primary school age
children)

Adjusted net 89.61194 90.104 90.3393 90.61155 90.51826 90.76855 90.7867 90.90341 .. ..
enrollment rate, 1
primary, male (% of
primary school age
children)

Adjusted net national 4.60057 -24.5734 4.19338 5.206541 4.181106 4.753226 5.159922 3.29861 3.698545 -2.57553
income (annual % 2
growth)

Adjusted net national 4238.903 3153.83 3241.64 3364.952 3459.96 3578.028 3714.917 3790.451 3884.182 3741.547
income per capita 9
(constant 2015 US$)

Adjusted net savings, 14.71516 15.02383 14.0386 14.44113 14.39544 14.11065 14.59904 13.85347 13.34201 13.51306
including particulate 7
emission damage (% of

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GNI)

Unemployment, total .. 4.729986 .. .. .. .. .. 6.135154 6.119726 6.698464

(% of total labor force)
(national estimate)

Unemployment, youth 15.05611 15.23647 15.5929 15.89826 16.70553 17.21844 17.63684 18.01636 17.50562 20.61457
female (% of female 4
labor force ages 15-24)
(modeled ILO
estimate)

Total debt service (% 2.318022 2.396629 2.50873 2.843207 3.235954 3.625935 3.375661 3.564546 3.88763 3.934142
of GNI) 5

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3. Challenges

One common challenge in empirical research is data availability and quality. Researchers
may face difficulty in accessing relevant data or may find that the data available is incomplete or
unreliable. To address this, researchers may need to explore alternative data sources, consider
using multiple data sets, or invest in cleaning and verifying the data before analyzing it.

4. Road Map

Week 1

 Finalize research questions and hypotheses

 Conduct literature review and gather relevant sources
 Identify and download relevant World Development Indicator datasets
 Begin data cleaning and preparation

Week 2

 Continue data cleaning and preparation

 Explore and visualize data using appropriate statistical techniques
 Develop a preliminary statistical model
 Review and refine the model based on preliminary results

Week 3

 Complete the statistical model and run regression analysis

 Interpret and analyze the results of the regression analysis
 Revise and refine the model based on the analysis
 Draft the results section of the final report

Week 4

 Write the introduction, literature review, methodology, and conclusion sections of the
final report

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  Revise and edit the report for clarity and accuracy
 Develop a presentation of the findings
 Practice the presentation and prepare for the final submission

Week 5

 Finalize the report and presentation

 Submit the final report and presentation
 Respond to any feedback or questions from the instructor or classmates
 Reflect on the research process and identify areas for improvement in future research
projects.

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References

Arora, V., & Vamvakidis, A. (2005). The impact of human development on economic growth.
IMF Working Paper No. WP/05/25. International Monetary Fund.

Tchamyou, V. S., Asongu, S. A., & Odhiambo, N. M. (2019). The role of human capital and
creativity in promoting economic growth in African countries. Journal of Economic Studies,
46(1), 33-50.

World Bank. (2019). World Development Indicators. Retrieved from

https://data.worldbank.org/products/wdi

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