Economic Integration and Human Development

This dissertation investigates the impact of economic integration on human development, considering the missing links among economic integration, economic development, government performance, and human development. It distinguishes between economic development and human development, and tests some hypotheses of free trade theory and human development theory. Neo-liberal free trade theorists argue that more economic integration, defined as free trade, and less government intervention in a market economy, will improve economic development, which automatically improves human development. To the contrary, human development theorists argue that economic integration might positively affect economic development, defined as the growth of GPD/capita, but not necessarily improve human development. Based on the data of 158 states in 1995 and between 1997 and 2002, this study tests which of the two theories is supported by the data. Most of the findings support the arguments of human development theory and disagree with the arguments of neo-liberal free trade theory.