Influence of World Development Indicators on Human Development: A Multiple Linear Regression and PSI Ranking Approach
Abstract
This study investigates the influence of World Development Indicators (WDI)
on the Human Development Index (HDI) within the regional context of Asian
countries. Understanding the interaction between these indicators and HDI
holds strategic relevance for enhancing the formulation of evidence-based
development policies. The analysis focuses on five key indicators: population
growth, voice and accountability, government effectiveness, GDP per capita
growth, and control of corruption. These variables represent essential
dimensions of governance and socioeconomic advancement. The dataset
comprises information from 46 Asian countries sourced from the World Bank.
The methodological framework integrates multiple linear regression to evaluate
the magnitude of each variable’s contribution to HDI. The Preference Selection
Index (PSI) is utilized to establish a performance-based ranking of countries
grounded in the selected indicators. Results demonstrate that population growth
and government effectiveness have significant impacts on HDI outcomes, while
the remaining variables exhibit no statistically significant effects. Comparative
analysis using PSI reveals inconsistencies between development indicator values
and actual HDI positions. South Korea shows the highest consistency between
quantitative rankings and HDI classification. These findings offer practical
insights for policy prioritization by identifying the most influential determinants
of human development in the region. The study emphasizes the importance of
tailored development strategies and encourages future research to strengthen
model robustness through control variable inclusion, sensitivity analysis, and
non-linear modeling approaches.
Keywords
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DOI: http://dx.doi.org/10.30829/zero.v9i1.23925
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