Determinants of the Levels of Development Based on the Human Development Index: A Comparison of Regression Models for Limited Dependent Variables

This paper aims to examine the factors affecting the level of development of countries using various regression models for limited dependent variables including binary logit, probit and Tobit analyses. In this manner, the paper may suggest a road map for high developed countries to achieve very high developed levels. For this purpose, Human Development Indices of 84 countries were involved in the analysis with respect to nine independent variables. The results of the all regression models indicates that determinants including life expectancy at birth, expected years of schooling, labour force participation rate (female-male ratio), and GDP per capita have statistically significant effects on the level of development.