What is the Key Element for the Territory's State of Development?
The result of process of territory-s development is the territory-s state of development (TSoD), which is pointed towards the provision and improvement of people-s life conditions. The authors offer to measure the TSoD according to their own developed model. Using the available statistical data regarding the values of model-s elements, the authors empirically show which element mainly determines the TSoD. The findings of the research showed that the key elements of the TSoD are the “Material welfare of people" and “People-s health". Performing a deeper statistical analysis of correlation between these elements, it turned out that it is not so necessary for a country to be bent on trying to increase the material growth of a territory, because a relatively high index of life expectancy at birth could be ensured also by much more modest material resources. On the other hand, the economical feedback of longer lifespan within countries with lower material performance is also relatively low.
[1] G. I. Arhipova, S. Balina, Statistics economy: solutions with SPSS and
Microsoft Excel: teaching tool (in Latvian). Riga: Datorzinibu Centrs,
2003.
[2] S. Arora, "Health, human productivity, and long-term economic
growth," Journal of Economic History, No.61(3), pp. 699-749, 2001.
[3] Association of Religion Data Archives. Online: http://www.thearda.com/
(accessed 20 October 2012).
[4] G. S. Becker, Human Capital: a Theoretical and Empirical Analysis,
with Special Rreference to Education. National Bureau of Economic
Research, Columbia University Press, 1964.
[5] J. Figueras, M. McKee, "Health systems, health, wealth and societal
well-being. Assessing the case for investing in health systems,"
European Observatory on Health Systems and Policies Series, Open
University Press, McCraw-Hill, 2012. Online:
http://www.euro.who.int/__data/assets/pdf_file/0007/164383/e96159.pdf
(accessed 20 October 2012).
[6] R. W. Fogel, "Economic growth, population theory and physiology: the
bearing of long-term process on the making of economic policy,"
American Economic Review, No.84(3), pp. 369-395, 1994.
[7] E. Ivanter, A. Korosov, Fundamentals of biometrics: an introduction to
the statistical analysis of biological phenomena and processes, teaching
tool (in Russian). Petrozavodsk: PGU, 1992.
[8] T. Jackson, "(Regional) Index of Sustainable Economic Welfare
(ISEW)," in Proc. Internat. Conf. Contribution to Beyond GDP ÔÇ×Virtual
Indicator Expo," Brussels, 2007. Online: http://www.beyondgdp.
eu/download/bgdp-ve-isew.pdf (accessed 20 October 2012).
[9] J. Klugman, "Human Development Report 2011. Sustainability and
Equity: A Better Future for All," J. Klugman (director and lead author),
United Nations Development Programme. Palgrave Macmillan, New
York, 2011.
[10] J. Lonska, V. Boronenko, "Correlation of objective ands territorial
development indices in the world," European Integration Studies:
Research and Topicalities, No.6 (2012), pp. 22-30, 2012.
[11] J. Lonska, "Methodological model for measurement of territorial
development of Latvian regions," in Proc. 13th Annu. Internat. Scient.
Conf. Economic Science for Rural Development, Jelgava, No.27,
pp.145-151, 2012.
[12] C. R. McConnel, S. L. Brue, Economics, Principle, Problems, and
Policies. McCraw-Hill, New York, 1996.
[13] J. Mitchell, R. Burkhauser, "Disentangling the effect of arthritis on
earnings: a simultaneous estimate of wage rates and hours worked,"
Applied Economics Letters, No.22, pp. 1291-1310, 1990.
[14] D. M. Morris, Measuring the Condition of the World's Poor: The
Physical Quality of Life Index. New York: Pergamon Press, 1979.
[15] M. E. Porter, The Competitive Advantage of Nations. Free Press, New
York, 1990.
[16] R. Prescott-Allen, The Wellbeing of Nations: A Country-by-Country
Index of Quality of Life and the Environment. Island Press, 2001.
[17] X. Sala-i-Martin, "On the health-poverty trap," in Health and economic
growth: findings and policy implications, G. L├│pez-Casasnovas, B.
Rivera, L. Currais, Ed. Cambridge, MA: The MIT Press, 2005, pp. 95-
114.
[18] X. Sala-I-Martin, G. Doppelhofer, R. I. Miller, "Determinants of longterm
growth: a Bayesian averaging of classical estimates (BACE)
approach," American Economic Review, No. 94(4), pp. 813-835, 2004.
[19] K. Schwab, "The Global Competitiveness Report 2012-2013,"K.
Schwab (Ed.), World Ecnomic Forum. Geneva, 2012.
[20] S. Stern, "Measuring child work and residence adjustments to parents-
long-term care needs," Gerontologist, No.36, pp. 76-87, 1996.
[21] T. W. Schultz, "Investment in human capital," The American Economic
Review, Vol.51, No.1, pp. 1-17, Mar. 1961.
[22] M. Suhrcke, D. Urban, D. "Are cardiovascular diseases bad for
economic growth?" Health Economics, Vol.19, Issue 12, pp. 1478-1496,
December 2010.
[23] M. Suhrcke, L. Rocco, M. McKee, "Health: a vital investment for
economic development in eastern Europe and central Asia,"
Copenhagen: WHO Regional Office for Europe on behalf of the
European Observatory on Health Systems and Policies, 2007. Online:
http://www.euro.who.int/__data/assets/pdf_file/0003/74739/E90569.pdf
(accessed 20 October 2012).
[24] E. Tompa, "The impact of health on productivity: empirical evidence
and policy implications," Ontario: Centre for the Study of Living
Standards, 2002. Online: http://www.csls.ca/repsp/2/emiletompa.pdf
(accessed 20 October 2012).
[25] D. Usher, "An imputation to the measure of economic growth for
changes in life expectancy," in The measurement of economic and social
performance, M. Moss, Ed. New York, Columbia University Press for
National Bureau of Economic Research (NBER), 1973, pp. 193-226.
[26] V. Vesperis, "Alternative territorial development index of planning
regions," in Economic science for Rural Development, in Proc. 12th
Annu. Internat. Scient. Conf. Economic Science for Rural Development,
Jelgava, No.26, pp. 230-236, 2011.
[27] A.Vitola, Z. Hermansons, "The assessment of Latvian cities- level and
pace of development," (in Latvian) Scientific Journal of Riga Technical
University. Economic and Business. Economy: Theory and Practice,
Vol.20, 3.series, pp. 148-156, 2010. Systems.
[1] G. I. Arhipova, S. Balina, Statistics economy: solutions with SPSS and
Microsoft Excel: teaching tool (in Latvian). Riga: Datorzinibu Centrs,
2003.
[2] S. Arora, "Health, human productivity, and long-term economic
growth," Journal of Economic History, No.61(3), pp. 699-749, 2001.
[3] Association of Religion Data Archives. Online: http://www.thearda.com/
(accessed 20 October 2012).
[4] G. S. Becker, Human Capital: a Theoretical and Empirical Analysis,
with Special Rreference to Education. National Bureau of Economic
Research, Columbia University Press, 1964.
[5] J. Figueras, M. McKee, "Health systems, health, wealth and societal
well-being. Assessing the case for investing in health systems,"
European Observatory on Health Systems and Policies Series, Open
University Press, McCraw-Hill, 2012. Online:
http://www.euro.who.int/__data/assets/pdf_file/0007/164383/e96159.pdf
(accessed 20 October 2012).
[6] R. W. Fogel, "Economic growth, population theory and physiology: the
bearing of long-term process on the making of economic policy,"
American Economic Review, No.84(3), pp. 369-395, 1994.
[7] E. Ivanter, A. Korosov, Fundamentals of biometrics: an introduction to
the statistical analysis of biological phenomena and processes, teaching
tool (in Russian). Petrozavodsk: PGU, 1992.
[8] T. Jackson, "(Regional) Index of Sustainable Economic Welfare
(ISEW)," in Proc. Internat. Conf. Contribution to Beyond GDP ÔÇ×Virtual
Indicator Expo," Brussels, 2007. Online: http://www.beyondgdp.
eu/download/bgdp-ve-isew.pdf (accessed 20 October 2012).
[9] J. Klugman, "Human Development Report 2011. Sustainability and
Equity: A Better Future for All," J. Klugman (director and lead author),
United Nations Development Programme. Palgrave Macmillan, New
York, 2011.
[10] J. Lonska, V. Boronenko, "Correlation of objective ands territorial
development indices in the world," European Integration Studies:
Research and Topicalities, No.6 (2012), pp. 22-30, 2012.
[11] J. Lonska, "Methodological model for measurement of territorial
development of Latvian regions," in Proc. 13th Annu. Internat. Scient.
Conf. Economic Science for Rural Development, Jelgava, No.27,
pp.145-151, 2012.
[12] C. R. McConnel, S. L. Brue, Economics, Principle, Problems, and
Policies. McCraw-Hill, New York, 1996.
[13] J. Mitchell, R. Burkhauser, "Disentangling the effect of arthritis on
earnings: a simultaneous estimate of wage rates and hours worked,"
Applied Economics Letters, No.22, pp. 1291-1310, 1990.
[14] D. M. Morris, Measuring the Condition of the World's Poor: The
Physical Quality of Life Index. New York: Pergamon Press, 1979.
[15] M. E. Porter, The Competitive Advantage of Nations. Free Press, New
York, 1990.
[16] R. Prescott-Allen, The Wellbeing of Nations: A Country-by-Country
Index of Quality of Life and the Environment. Island Press, 2001.
[17] X. Sala-i-Martin, "On the health-poverty trap," in Health and economic
growth: findings and policy implications, G. L├│pez-Casasnovas, B.
Rivera, L. Currais, Ed. Cambridge, MA: The MIT Press, 2005, pp. 95-
114.
[18] X. Sala-I-Martin, G. Doppelhofer, R. I. Miller, "Determinants of longterm
growth: a Bayesian averaging of classical estimates (BACE)
approach," American Economic Review, No. 94(4), pp. 813-835, 2004.
[19] K. Schwab, "The Global Competitiveness Report 2012-2013,"K.
Schwab (Ed.), World Ecnomic Forum. Geneva, 2012.
[20] S. Stern, "Measuring child work and residence adjustments to parents-
long-term care needs," Gerontologist, No.36, pp. 76-87, 1996.
[21] T. W. Schultz, "Investment in human capital," The American Economic
Review, Vol.51, No.1, pp. 1-17, Mar. 1961.
[22] M. Suhrcke, D. Urban, D. "Are cardiovascular diseases bad for
economic growth?" Health Economics, Vol.19, Issue 12, pp. 1478-1496,
December 2010.
[23] M. Suhrcke, L. Rocco, M. McKee, "Health: a vital investment for
economic development in eastern Europe and central Asia,"
Copenhagen: WHO Regional Office for Europe on behalf of the
European Observatory on Health Systems and Policies, 2007. Online:
http://www.euro.who.int/__data/assets/pdf_file/0003/74739/E90569.pdf
(accessed 20 October 2012).
[24] E. Tompa, "The impact of health on productivity: empirical evidence
and policy implications," Ontario: Centre for the Study of Living
Standards, 2002. Online: http://www.csls.ca/repsp/2/emiletompa.pdf
(accessed 20 October 2012).
[25] D. Usher, "An imputation to the measure of economic growth for
changes in life expectancy," in The measurement of economic and social
performance, M. Moss, Ed. New York, Columbia University Press for
National Bureau of Economic Research (NBER), 1973, pp. 193-226.
[26] V. Vesperis, "Alternative territorial development index of planning
regions," in Economic science for Rural Development, in Proc. 12th
Annu. Internat. Scient. Conf. Economic Science for Rural Development,
Jelgava, No.26, pp. 230-236, 2011.
[27] A.Vitola, Z. Hermansons, "The assessment of Latvian cities- level and
pace of development," (in Latvian) Scientific Journal of Riga Technical
University. Economic and Business. Economy: Theory and Practice,
Vol.20, 3.series, pp. 148-156, 2010. Systems.
@article{"International Journal of Business, Human and Social Sciences:50630", author = "J. Lonska and V. Boronenko", title = "What is the Key Element for the Territory's State of Development?", abstract = "The result of process of territory-s development is the territory-s state of development (TSoD), which is pointed towards the provision and improvement of people-s life conditions. The authors offer to measure the TSoD according to their own developed model. Using the available statistical data regarding the values of model-s elements, the authors empirically show which element mainly determines the TSoD. The findings of the research showed that the key elements of the TSoD are the “Material welfare of people" and “People-s health". Performing a deeper statistical analysis of correlation between these elements, it turned out that it is not so necessary for a country to be bent on trying to increase the material growth of a territory, because a relatively high index of life expectancy at birth could be ensured also by much more modest material resources. On the other hand, the economical feedback of longer lifespan within countries with lower material performance is also relatively low.
", keywords = "Development indices, health, territory's state of development, wealth.", volume = "7", number = "4", pages = "849-6", }
