Relationship between the level of human development and institutional quality

Abstract

Implementation of the sustainable socio-economic development goals is an important task for any country, which is why researchers pay attention to the analysis of factors that influence development. Human development is one of the components of development in a wide context. The level of human development largely depends on the quality of the institutional environment in a society. The article examines the relationship between the human development level and the institutional environment quality. Human Development Index (HDI) and Worldwide Governance Indicators (WGI) are used. The analysis includes data for 188 countries for the period from 2017 to 2019. Three clusters are obtained as a result of cluster analysis. The Spearman Rank Order and Kendall Tau Correlations are calculated for each cluster. The link between HDI and WDI is found to be directly positive. Moreover, the strength of the relationship depends on the quality of indicators in groups of countries - the higher the quality of indicators, the stronger the link between them. The results are obtained using the Statistica application package.

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