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Relationship between the Human Development Index and public social spending: European experience for Ukraine

  • Received May 10, 2024;
    Accepted July 17, 2024;
    Published October 4, 2024
  • Author(s)
    Link to ORCID Index: https://orcid.org/0000-0003-1112-6891
    Artem Artyukhov
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0003-3903-6716
    Larysa Hrytsenko
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0003-3396-5688
    Nadiia Dekhtyar
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0002-9090-1763
    Nataliya Pihul
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0002-8775-9348
    Olha Deineka
    ORCID Researcher ID ,
    Link to ORCID Index: https://orcid.org/0000-0002-7756-781X
    Ferdinand Daňo
    ORCID ,
    Link to ORCID Index: https://orcid.org/0000-0002-5371-1661
    Paulina Krnačova
    ORCID
  • DOI
    http://dx.doi.org/10.21511/ppm.22(4).2024.03
  • Article Info
    Volume 22 2024, Issue #4, pp. 25-38
  • TO CITE АНОТАЦІЯ
  • 332 Views
  • 72 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study focuses on the relationship between the Human Development Index (HDI) and public social expenditures, analyzing socio-economic models using the examples of selected European countries and Ukraine. The study used the values of the HDI, GDP, and indicators of public expenditures for social purposes, namely, healthcare, education, leisure, culture and religion, and social protection for the period from 2010 to 2021. The analysis targeted 13 European countries using data sets from Eurostat, the Office for National Statistics of the United Kingdom, the State Statistics Service of Ukraine, and the Ministry of Finance of Ukraine. The input time series were checked for lagged values using the STATISTICA software.
Empirical evidence suggests a relationship between HDI and public social spending. An increase in the share of public social expenditures in GDP leads to an increase in HDI and vice versa. European countries with a social-democratic model of development have the highest level of centralization of public expenditure in GDP (34.72%) and the highest HDI (0.930), while countries belonging to the Southern European model have the lowest share of socially oriented public expenditure (30.41%) and the lowest HDI (0.873). In addition, there is a time lag between the investment of public funds in healthcare, education, leisure, culture and religion, and social protection and their impact on HDI changes. Thus, ensuring a high level of HDI is achieved, among other things, through state financial support for the relevant components of the social sphere and social protection.

Acknowledgment
The study is funded by the EU NextGenerationEU through the Recovery and Resilience Plan for Slovakia under project No. 09I03-03-V01-00130.

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  • PAPER PROFILE
  • AUTHORS CONTRIBUTIONS
  • FIGURES
  • TABLES
  • REFERENCES
  • Keywords
    HDI, human capital, public social spending, relationship, social sphere, socio-economic models
  • JEL Classification (Paper profile tab)
    Н50, I31, О15
  • References
    35
  • Tables
    2
  • Figures
    5
    • Figure 1. The main components of the Human Development Index
    • Figure 2. Dynamics of the share of public expenditures for social purposes and HDI with a breakdown of different socio-economic models
    • Figure 3. Dynamics of the share of public social expenditures that form HDI (healthcare, education, spiritual and physical development, social protection) by socio-economic models
    • Figure 4. Visualization of trends in the share of social expenditures in GDP and HDI
    • Figure 5. Results of checking input time series for lagging values
    • Table 1. Characteristics of socio-economic development models of countries
    • Table A1. Dynamics of the Human Development Index in European countries and Ukraine for the period 2010–2021
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    • Conceptualization
      Artem Artyukhov, Larysa Hrytsenko, Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka, Ferdinand Daňo, Paulina Krnačova
    • Data curation
      Artem Artyukhov, Ferdinand Daňo
    • Funding acquisition
      Artem Artyukhov, Ferdinand Daňo, Paulina Krnačova
    • Methodology
      Artem Artyukhov, Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka
    • Resources
      Artem Artyukhov, Ferdinand Daňo, Paulina Krnačova
    • Software
      Artem Artyukhov, Paulina Krnačova
    • Supervision
      Artem Artyukhov, Ferdinand Daňo
    • Validation
      Artem Artyukhov, Paulina Krnačova
    • Writing – original draft
      Artem Artyukhov, Larysa Hrytsenko, Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka, Ferdinand Daňo, Paulina Krnačova
    • Writing – review & editing
      Artem Artyukhov, Larysa Hrytsenko, Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka, Ferdinand Daňo, Paulina Krnačova
    • Formal Analysis
      Larysa Hrytsenko, Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka
    • Investigation
      Larysa Hrytsenko, Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka
    • Visualization
      Nadiia Dekhtyar, Nataliya Pihul, Olha Deineka
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