Uneven Human Development: Revisiting Economic, Environmental, and Political Determinants in OECD

Abstract

This study examines the factors influencing uneven human development in OECD countries from 1995 to 2021, focusing on industrial structure, governance, and environmental degradation while controlling for income inequality, trade openness, and unemployment. The MMQR analysis reveals that increasing industrial output alone does not enhance human development; however, medium and high-technology manufacturing exports significantly boost HDI. Additionally, CO2 emissions per capita negatively impact HDI, highlighting the need for zero-carbon industrialization. Democracy improves HDI in lower quantiles, while income inequality negatively affects HDI, particularly in higher quantiles. Trade openness supports HDI. The study suggests that OECD countries should pursue high-tech industrialization, reduce CO2 emissions, strengthen democratic governance, address income inequality, and manage trade openness for sustainable and equitable human development, requiring integrated policies to connect economic, social, and environmental aspects.