Influence of World Development Indicators on Human Development: A Multiple Linear Regression and PSI Ranking Approach

<p>This study investigates the influence of World Development Indicators (WDI)<br />on the Human Development Index (HDI) within the regional context of Asian<br />countries. Understanding the interaction between these indicators and HDI<br />holds strategic relevance for enhancing the formulation of evidence-based<br />development policies. The analysis focuses on five key indicators: population<br />growth, voice and accountability, government effectiveness, GDP per capita<br />growth, and control of corruption. These variables represent essential<br />dimensions of governance and socioeconomic advancement. The dataset<br />comprises information from 46 Asian countries sourced from the World Bank.<br />The methodological framework integrates multiple linear regression to evaluate<br />the magnitude of each variable’s contribution to HDI. The Preference Selection<br />Index (PSI) is utilized to establish a performance-based ranking of countries<br />grounded in the selected indicators. Results demonstrate that population growth<br />and government effectiveness have significant impacts on HDI outcomes, while<br />the remaining variables exhibit no statistically significant effects. Comparative<br />analysis using PSI reveals inconsistencies between development indicator values<br />and actual HDI positions. South Korea shows the highest consistency between<br />quantitative rankings and HDI classification. These findings offer practical<br />insights for policy prioritization by identifying the most influential determinants<br />of human development in the region. The study emphasizes the importance of<br />tailored development strategies and encourages future research to strengthen<br />model robustness through control variable inclusion, sensitivity analysis, and<br />non-linear modeling approaches.</p>