Social Performance and States Economic Growth

A substantial academic literature, yet sometimes contradictory, describes the ambivalent links between economic growth on the one hand and non-financial aspects of human development such as health or education on the other. From an empirical point of view, it appears that the economic growth of a country is usually accompanied by an improvement in its social level. The reverse relationship is debated: Is a higher-than-expected level of social development / GDP ratio a strength or weakness in terms of additional income generation?

The gap analysis between actual GDP and a theoretical GDP consistent with the level of social development achieved (called sustainable GDP) shows that over a five-year period, countries whose social performance is above average have significantly higher growth.

This is obviously not a first-order determinant of future growth, but the quantitative assessment of actual social performance, i.e. relative to the level of economic development of the country, provides useful additional information on the growth.

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By | 2018-03-06T15:27:43+00:00 March 21st, 2017|Research note|Comments Off on Social Performance and States Economic Growth

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